SUPERMARKET bosses have moved quickly to quash rumours one of their stores is to close to make way for a controversial redevelopment in the heart of Billingham.

Hundreds of people have already objected to plans for a leisure, health, learning and cultural facility in the town's John Whitehead Park.

It would mean pulling down the Billingham Forum, with the loss of the theatre.

The proposals have sparked a number of campaigns, including the launch of a group dedicated to saving the theatre while another is resisting the concept of development on the park.

Stockton Borough Council hopes to use the money from the sale of the Forum to pay for the community facilities.

But residents fear that the closure of the Kwik Save supermarket in the town centre next month could be the first step in the moves to have the Gateway Project pushed through.

It comes amid claims that Stockton Borough Council has increased the rent it was demanding from Kwik Save so that it could force the supermarket to close.

However, Kwik Save has refuted the allegations.

"Our lease on the property had expired and, as it was not trading very well, it was decided to close the store, said a spokesman.

"We would like to thank our customers for their support over the years."

The Northern Echo has also received calls from residents concerned that the building would now be left empty and would do nothing to attract investment to the town.

However, Billingham Partnership Board spokesman, Steve Cooke, said: "We are in favour of a prosperous town centre and that is what is needed to take Billingham forward.

"The partnership would regret it if a store did not wish to trade in Billingham, but it is clear from what we have seen this is not a conspiracy."

A spokesman for the council said: "The lease which Kwik Save has on the property expired on December 1999 and the terms for a new one were agreed some time ago, including a new rent.

"Kwik Save agreed with the council on the main terms of the new lease, specifically on the issue of rent.

"In January, 2002, Kwik Save surveyors contacted the council advising their continued trading from this location was no longer viable at the rent agreed."

It is expected plans for the Gateway Project will be submitted to the council by the end of next month.