The Inner City Trust has lodged a planning application with Derry City and Strabane District Council to convert the historic Austins building into a community hub.
This proposal involves significant structural changes, including a rear extension that would span from the first to fourth floors alongside internal and external modifications.
An existing café currently operating on the third floor is set to be moved to the top level, where it would offer panoramic views across the city centre.
The project aims to return the structure to commercial use while supporting broader regeneration efforts within the city centre.
Austins, located in Shipquay Square, was constructed between 1860 and 1879 and remains one of Londonderry's most identifiable landmarks.
Thomas Austin originally opened a drapery shop on this corner in 1830, predating major retail chains such as Harrods and Macy's by several decades.
The business ceased operations in 2016 following liquidation, resulting in the loss of more than 50 jobs and leaving the building vacant for over a decade.
Financial difficulties had already become apparent prior to closure, with the retailer recording substantial losses in 2011 and 2012 before its eventual shutdown.
The Inner City Trust acquired the listed property last year using funding from the department's North West Regeneration Fund.
Restoring the building to its former condition is a stated objective of the owners, who view it as a cornerstone of local shopping history.
As retail patterns shifted in the early twenty-first century, Austins struggled under mounting pressure before closing its doors permanently.
The proposed development intends to bring new life to the site while honouring its architectural significance and historical importance.
Derry City and Strabane District Council will now review the submission to determine if it meets all planning requirements for such a transformation.
No decision on the application has been made at this time, and the outcome remains subject to the council's formal consideration process.