TWO companies are to go head to head when they both open new caf bars in Chester-le-Street.

Luminar Leisure, one of the biggest leisure companies in Britain, is to begin work on its £1.2m American-style bar in just over two weeks.

Meanwhile, Chester-le-Street businessman Billy Walton is planning to open a caf bar at the opposite end of the town centre, after receiving permission from the planning inspectorate on Thursday last week.

Luminar Leisure secured planning consent in February last year to build its Chicago Rock Caf at the south end of Front Street, Chester-le-Street.

Work is expected to begin on the long-awaited bar during the week commencing December 8 and should be completed in late February or early March 2004.

The venue, built on the site of a former garage, will play music from the 1950s to the 80s and have a dance floor and restaurant.

Luminar director Steve Dennis, said: "All licences and permissions are in place and we're just about to take possession of the site."

Mr Walton, head of Hunky Dory Leisure, is planning to build his bar at the north end of Front Street.

He has also obtained permission for a 1,000 capacity club on the site, but says it is unlikely he will build it as he already runs Crocodillos club in the town.

The caf bar will be built on the site of the derelict Queens Hall Bingo in the Market Place.

He said: "We haven't got any times for opening the venue yet, but it will be some time next year.

"I think the Chicago Rock Caf is at the wrong end of town, because people make their way down towards the Market Place, so it will be interesting to see what happens."

Both bars have received some opposition.

Residents at Union Court, a development for the over-55s, objected to the Chicago Rock Caf as their flats are only about 100 metres away and they feared anti-social behaviour, despite assurances from Mr Dennis that they will not hear any sound from the building.

Initially Chester-le-Street District Council had objected to Mr Walton's proposals, as they also thought it would lead to anti-social behaviour.

But the council was advised it would be unlikely to win Mr Walton's appeal against its refusal of planning permission, after police dropped their opposition and it did not contest the appeal.