A TROUBLED department store may retain a town centre presence if it has a strong Christmas trading period, it has been claimed.

Darlington Borough Council's deputy leader Chris McEwan said he was "optimistic" that the town's iconic Binns High Row store could remain open, despite plans being approved for it to close early next year.

The Northern Echo understands bosses are trying to strike a deal to improve the store's profitability and increase the chances of it remaining open.

The fresh hope comes after Sports Direct tycoon Mike Ashley and House of Fraser have discussed a new investment deal for the struggling retailer, according to reports.

The billionaire, who already owns an 11 per cent stake in the department store, is said to have been asked to consider providing it with a £50m loan.

Bankers acting for the retailer are understood to have held talks with Mr Ashley's executives about a possible deal.

House of Fraser announced plans to close 31 of its 59 stores in June, putting 6,000 jobs at risk, however a legal challenge has raised the prospect the rescue bid may fail.

Among those sites were the company's Darlington and Middlesbrough stores, which would result in hundreds of North-East job losses.

The stores are expected to close in 2019.

Cllr McEwan said: "I am optimistic that we have a fighting chance of having a department store and having a House of Fraser in Darlington.

“There are lots of factors to take into account, and how the store trades in December and into the New Year could be crucial for its future.

“Let me be very clear, the future still looks very grim but we cannot give up hope until it is done.

“We also need people not to give up on the town centre, and we need to recognise that we have some great independent retailers."

Darlington MP Jenny Chapman said: ‘The people of Darlington will think anything's better than an empty shop. Let's hear what he's (Mr Ashley) got to say.

'This is a prime location and a profitable store. We need a quality store that appropriately fits this site'

Alex Williamson, chief executive of House of Fraser, has previously described the CVA as the "last viable" option for the business.