FEARS have been raised that if the Co-op pulls out of Bishop Auckland, other big-name stores might follow suit.

The Co-operative Group, which operates the town's only department store, said on Friday it was closing or selling off all its department stores across the country.

If it has not managed to sell the Bishop Auckland store by February 2007, it will close.

But traders are concerned that if the Co-op was to shut, other national shops might also leave the town.

Paul Wilson, chairman of the business and traders association, said: "The Co-op has been in Bishop Auckland for a very long time and it would be a huge loss of history and tradition if it were to close.

"It would be a huge setback.

"We really need to keep some of the bigger names, such as Marks & Spencer, and Boots, because if we lost them we would find it very hard to attract more big names. And if the Co-op goes, we might lose Marks & Spencer. It could snowball and we could end up with a ghost town."

Mr Wilson urged people to use their local shops - or lose them.

However, he said if the Co-op managed to sell the store to another chain, such as Debenhams or House of Fraser, this would have the reverse effect, and attract more national companies to the town.

Bishop Auckland MP Helen Goodman said she was seeking talks with the Manchester-based Co-operative Group to see if it would look again at its plans.

Margaret Ellis, who runs an electrical shop next to the Co-op department store, said: "If it were to close, that would be horrendous, a very sad moment for the town.

"It's a shame because it is a good department store and sells all sorts of things, but many people in the town just don't realise this.

"At the moment everybody is trying to make the town look better, and we are filling shops that were empty. If that big shop was empty it would look terrible."

The Co-op's history in the town goes back to the 1850s, and the building was constructed in the early 20th Century.