SUPERMARKET Morrisons is to close one of its stores in the region.

The branch in Darlington is to make way for cut-price clothing company Matalan.

The announcement means all 159 of its workers at its Morrisons Neasham Road store will be offered jobs at the two other stores in the town.

Staff at the 45,000sq ft supermarket were told the news on Friday night and Saturday morning, and were assured that they would be transferred to either Morton Park or North Road.

The supermarket took over the site from the Co-op three years ago.

The company has announced it will create more than 100 jobs when it opens in the autumn.

Matalan said yesterday that it will be investing more than £1.5m in the store, which will be one of its largest in the region.

Morrisons has confirmed it will close on June 22, and that Matalan will take over the site on June 30.

Neither company would disclose how much the deal was worth, but it is believed the cut-price retailer has taken over the site on lease.

A spokesman for Matalan said the move was part of the company's expansion programme, with 55 new stores planned to open before 2005.

The company already has stores at Stockton, Middlesbrough, Hartlepool, Sunderland, two in Gateshead, two in Newcastle, and its biggest in the country at Killingworth, north of Newcastle.

A Matalan spokesman said: "We feel this new store will be a big plus for Darlington, and the creation of more than 100 jobs will be great news for the people of the town.

"This will be one of our biggest stores in the region, and we are also looking at possible sites for a store at Durham."

A spokesman for Morrisons said: "We are sorry if this inconveniences customers but we decided to close Neasham Road and concentrate on our other two stores, which are trading well."

However, the news has angered some local residents. Pensioner David Brookes, said: "I have a disabled wife and shop there every day, so it means catching a bus, which is going to be very tough.

"I'm not happy at all at its closure."

Ward councillor Stella Robson, said: "It is great shame for local residents, especially elderly or disabled people, who rely on the store. Morrisons is a good store, but I feel for the elderly customers.