Guisborough'S largest shop is to close with all the staff being made redundant.

Twenty three members of staff at Sunwin House have been told of the store's impending closure, and the loss of their jobs.

Peter Marks, chief executive officer for Sunwin House, said last Friday: "The store, for some time now, has not been performing satisfactorily from a sales point of view, and I am afraid that like many shops in small towns, it has become a victim of large retail parks that are being built on the edge of towns."

Mr Marks said the staff were all very sad at the news and that they had made 'valiant efforts' to keep the store afloat.

"It is very sad, but in the circumstances we don't have many other options," he said.

Mr Marks said the company, which owns the building, plans to turn the store into smaller units and rent those out.

Stan Frank, chairman of Guisborough Business Association, said: "It is very sad to lose any business in Guisborough, especially such an established business.

"However, we have been led to believe that the shop is to be divided into three smaller units, and that there are already people interested or signed up for those units, and that is good news."

Coun David Walsh, leader of Redcar and Cleveland Borough Council, said: "It is a sad day for Guisborough - the shop has been there for a long time and is very much a part of the town's history.

"It has been a victim of out-of-town shopping and this reflects this council's policy of resisting out-of-town shopping centres and protecting our town centres and market towns.

"Guisborough is still a buoyant retailing area, and I am sure that the premises will be of interest to other businesses, particularly with the council's decision to relocate some offices to Guisborough.