A POLITICAL row broke out as Guisborough was left reeling from the shock closure of its only department store.

Sunwin House is to close next month with the loss of 23 jobs. The company blames out-of-town shopping centres for the move. But there is a glimmer of hope as the premises are to be split up into smaller retail units which could offer work for those being made redundant.

Redcar and Cleveland council welcomes this idea and says sub-division of the property would not need planning permission.

But Conservative group leader, Coun Barbara Harpham, blames council neglect for the blow to the town.

Council leader, Coun David Walsh, angrily denied this and agreed with Sunwin House chief executive officer, Mr Peter Marks, that out-of-town shopping was at the root of the problem.

Mr Marks said the store would close in the first or second week of February. "It is always sad to have to make people redundant," he said.

"But the store has been failing for some time, despite the valiant efforts of staff.

"The reason is typical of many small town stores. Out-of-town centres are the death of such businesses. They simply cannot survive."

Mr Marks said it was unfortunate that the store was not near any other Sunwin House operations so that staff could be redeployed. "Guisborough is a bit out on a limb," he said.

The building, which has been part of the town's trading scene for many years, will stay in Sunwin House ownership and be split into smaller units.

"We are disappointed to have come to this, but it is a harsh commercial fact," he said. "It has been coming for a while."

Guisborough business association chairman, Mr Stan Frank, said the whole town was upset at people losing their jobs. "But we understand the unit is to be divided up and that there are already tenants in the frame," he said. "So that sweetens the pill a bit.

"I just hope there is no delay in redefining the premises and that there might be employment for people who have lost their jobs."

Coun Walsh said: "This is a sad day for Guisborough. Sunwin House was a lineal descendant of perhaps the biggest of the old-style stores in the town, the Co-op.

"But trade in Guisborough is buoyant. There are only a couple of shops empty and I think the Sunwin House property will be looked at with interest by other parties."

Coun Harpham said: "It is obvious the picture in Guisborough is not as rosy as Coun Walsh tries to paint. Boasting in his new year message that bringing new council offices to the town to underpin local trade was a bit rich.

"Until recently, Guisborough has been ignored by the council and now that neglect is starting to have an effect."

Coun Walsh hit back: "Mr Marks underlined the reasons why this council has had a policy of resistance to out-of-town shopping schemes. They are the great enemy of small market towns.

"Coun Harpham has obviously not seen Guisborough's new library, the new cobbles and the work in schools. Neither has she taken part in improving local recreational amenities. Instead she appears to have nothing but negative thoughts about the new council offices for the town.