A LEISURE chain that received a setback over plans to build a caf and bar in Durham is creating a new branch in Chester-le-Street after being asked by residents.

In a reversal of the usual course of events, Luminar Leisure was approached by people in the town to create a branch of the Chicago Rock Caf theme bar.

Plans to create one of the American-style restaurants and bars in Claypath, in Durham, were rejected several months ago, after the company was refused a drinks licence following a lengthy hearing.

Luminar Leisure had secured planning permission to convert the former Palladium cinema and bingo hall and had an entertainment licence to open until midnight.

But when it applied for a drinks licence, police and residents objected on the grounds that the location was inappropriate.

Now Luminar Leisure plans to create a £1.2m development on the site of a former garage at 187-189 Front Street, Chester-le-Street.

Director of Luminar Leisure, Steve Dennis, said 50 jobs would be created by the new development, which is aimed at more mature drinkers.

He said: "Chester-le-Street was identified as an ideal location by some local residents who regularly use the venue branch in Hartlepool."

Chester-le-Street District Council granted planning permission for an American-style restaurant and bar about six months ago.

Director of planning Tom Watson said: "Planning permission was granted some time ago for the Wetherspoons chain, but it was never taken up.

"It was approved earlier this year for two units to be converted into a caf bar."

Now Luminar Leisure is applying for a drinks licence and permission for extended opening hours.

The case will be heard at Chester-le-Street Magistrates' Court on Friday, July 12.

Mr Dennis said they had not given up on their bid to open a branch in Durham.

He said: "Luminar Leisure got on very, very well with its neighbours in Claypath.

"We decided Claypath wasn't the place for us.

"However, we still regard Durham City centre as being an ideal location for Chicago Rock Caf if we find the right site."