HUNDREDS of retail workers in the region were facing an uncertain future last night following a decision by the owner of a chain of department stores to close the business.

Merchant Retail, which owns The Perfume Shop, is selling its Joplings store at Tynedale Park, Northumberland, for £17m after receiving an offer for three times the value of the site from Tesco.

It told staff last night that buyers were being sought for two remaining Joplings outlets - one at Sunderland and a Robbs-branded outlet in Hexham, Northumberland.

The closure of the Woodward's store in Leamington Spa, Warwickshire, is under way.

A statement from the Merchant Group said: "The board is extremely sad to have reached this conclusion and is deeply concerned for the future of the many people who work for the group in the Joplings division. The board will do all it can to assist them."

About 170 staff are expected to lose their jobs at Tynedale Park, but the company said it was hopeful the remainder of its team could be kept on by future buyers.

In total, 613 workers will be affected by the decision.

The company has about 100 outlets of The Perfume Shop and will keep its de Gruchy department store in Jersey, which has been operating independently.

Chief executive Philip Newton described the decision to accept the offer for Tynedale Park as the most difficult of his life, but said he had been obliged to accept it on behalf of shareholders.

He said the board also had to consider the better growth prospects of The Perfume Shop compared to the increasing competition seen in the department store sector.

Completion of the Tynedale Park deal is expected on February 15, next year.

Buyers at Sunderland and Hexham will be needed by the autumn or the businesses will be closed and assets sold.

Despite a tough trading environment, the Joplings division contributed underlying profits of £3.9m to group results in the year to March 27.

Proceeds from the disposals will be put towards the further expansion of the Perfume Store format in the UK, as well as in Australia. Shareholders may also benefit from share buybacks, the company said.