BISHOP Auckland strikes you as the sort of place you’d be more likely to stumble on a cheap and cheerful chippie than an upmarket champagne bar.

But two businessmen have invested nearly £1m revamping part of the Market Place to create a soiree where punters could be paying £250 for a bottle of top bubbly.

Despite the credit crunch, No 1 Market Place officially opened this week as the town’s first champagne and cocktail bar.

Dr Sanjeev Devgan, who is in business with brother, Rajeev, says he isn’t daunted by the recession and believes the bar will attract a cross-section of people.

He says: “The secret is that we are daring when others are scared, but you have got to be.

“If it’s good when it’s bad, it’ll be fantastic when the good times are back.”

The former manager of Auckland Castle, Kim Fryer, has been drafted in as a marketing consultant.

“Bishop used to be the place to come to,” she says.

“Now is the right time to open. We are just starting out with regeneration in the town and someone has to take the first step.

“I think that these two businessman have been really brave.”

No 1 is built on part of the old Doggarts department store, which was known in its heyday as “the Harrods of the North-East”.

Ms Fryer adds: “Doggarts was known for its quality so it’s apt that we are using this building to have something special.

“I think Bishop’s ready for it. The buzz in the town has been phenomenal.”

Bernadette Giblin, 49, was at the launch party. She says: “It’s exactly what Bishop Auckland needs and it’s not too expensive.”

Kathryn Hume, 42, from Bishop Auckland, said: “It is raising people’s spirits. It’s exciting, people will travel from outside Bishop Auckland to come here.”

The new business comes on the back of a multimillion pound urban renaissance project to make the town a better place to work and live.

Plans for five commercial units and 85 flats in North Bondgate by developer Helioscity were given the green light last year.

A £414,000 council-led transformation of the historic Fore Bondgate street was completed in December with the aim of encouraging a cafe culture.

Work on £45m plans for a 250-seat football stadium and leisure park, including a bowling alley, cinema and a supermarket, is also expected to start this year, where 1,000 jobs will be created.

The dress code for No 1 Market Place is smart casual.