MARKS & Spencer may open a store in Northallerton. The company is believed to be interested in two units in the town.

This week, Paul McAteer, a director of property investment company Cad Properties, said he felt sure M&S would open a shop, possibly one of its new food outlets.

The Mayor, Coun Jack Dobson, said it would be wonderful for Northallerton. "The store has a certain cach and I have no doubt its presence would attract more people to the town."

Mr McAteer's company is behind the new Laura Ashley shop in South Parade and the proposed move of Betty's to the former HSBC building in the High Street. His firm is also trying to buy another property in Northallerton.

"This is a very strong town with still a lot of retail demand, but the quality of retailing could be improved, especially on the fashion front," he said. "There are two or three very good operators who are keen to get into Northallerton. It is a question of finding the right premises."

His company owns the Grade II listed HSBC building, which Betty's wants to move into, and is in talks about the premises Betty's now occupies. Mr McAteer said there were two or three retailers interested in that site.

M&S had been "making noises about moving into the town for years," he said. "They are interested in two units and have been to the town to look them over," he said.

A spokesman for M&S said Northallerton was in a region being looked by the store, but nothing had been confirmed.