IT is believed that 150 jobs will be created if Danish furniture retailer Ilva's planned takeover of the M&S Lifestore in Gateshead goes ahead.

The failed Lifestore closes tomorrow, only 11 months after it opened, and now seems likely to be taken over by Ilva.

Ilva, a rival of furniture group Ikea, is said to be close to signing a £35m deal, which will see it take over the 70,000sq ft store along with three nearby shops.

It is expected the store will employ 145 staff.

The company is aiming to build 20 UK stores, with work already under way on a site in Manchester.

M&S has refused to comment on negotiations for the future of the Gateshead site.

The Lifestore had a disastrous year, which is said to have cost the retailer millions of pounds.

The £40m experiment, opened under the direction of former Selfridges boss Vittorio Radice, failed to attract shoppers and its closure was announced by M&S chief executive Stuart Rose last summer.

Ilva were contacted about the claims but declined to comment.