Macy's has announced that it plans to close its downtown Houston department store after that had served the city for 65 years.

The Cincinnati-based retailer said it plans to close the 791,000-square-foot Main Street store early this spring. Mayor Annise Parker told reporters that "essentially they lost their lease."

Parker said the property owner, 1110 Main Partners LP, plans to demolish the building and build a commercial office building on the site.

Macy's says the store's 138 employees will be offered positions in nearby stores or laid off with severance benefits, where eligible.

The store opened in 1947 as the flagship outlet for the Houston-based Foley's department stores, which ultimately became part of Macy's.

Clearance sales will begin Monday.