A DISCOUNT retailer has confirmed a store in a County Durham town centre is to close, sparking fears it could have domino effect on other businesses.
Poundland said it is expected to shut its Chester-le-Street shop later this month.
North Durham MP Kevan Jones said he feared further store closures could follow.
He said: “This is bad news for Chester-le-street town centre, adding to the list of empty retail units.
“I have been calling for some time for a plan to provide more housing in the town centre to reverse the decline and make it attractive for smaller retailer."
He said: “Without this I fear further closures.’’
It is understood the firm has been unable to reach agreement to renew the lease on the Front Street building it currently uses.
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A spokesman for Poundland said: “We're as disappointed as our colleagues and customers to be closing our store in Front Street, Chester-le-Street, later this month. Sadly, our lease has expired.
“Where we close a store, it goes without saying we always work hard to look after colleagues directly affected." Poundland was founded in 1990 in Burton-upon-Trent and started selling most items, including clearance stock and branded products, for £1.
Over the last three decades it has grown into a multi-million pound empire with stores across the UK and into Europe.
Last month it opened the biggest Poundland in the country at Teesside Park in the region.
Retail consultant Graham Soult, vice-chairman of the Durham Business Group, said: “It tends to take short leases in the first place and when they are up for renewal they are quite ruthless in negotiations.
“If the landlord is not playing ball it is not scared of pulling out of places, and we have seen this recently in Bishop Auckland and Hexham.
“The important thing to say is it does not necessarily indicate a problem with those places, it indicates that Poundland has no been able to reach an agreement with the landlord at that unit.
“My understanding is that is the reason in Chester-le-Street.”
Mr Soult said it was possible that there could be a last minute reprieve for the store or that another venue in the town could be found.
He said: “I have been making the case strongly for why Poundland should stay in Chester-le-Street and have suggested a few possible venues.
“They have not ruled out opening at another location in Chester-le-Street if they can get the right deal.”
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