THE loss of Redcar's Marks and Spencer shop is a "body blow" for the seaside town, a councillor has warned.

The retailer announced yesterday that it planned to close its shop in Redcar's High Street, which has been in the town since 1938, and a clothing "outlet" store since 2008. It also has a small food area.

M&S opened a Simply Food shop at Cleveland Retail Park in Skippers Lane, Middlesbrough, two years ago.

The 44 staff who work at Redcar would be redeployed elsewhere, with no compulsory redundancies, the retailer said yesterday. Staff entered a period of consultation today. (Monday)

A spokesman said the decision had "not been made lightly" and said it was due to the clothing business managing its stock levels better than ever before and holding on to stock for longer, meaning its clearance business through the outlet stores was not needed to the same level.

Its online outlet business was also growing, the spokesman said.

But Councillor Mark Hannon, Redcar and Cleveland's cabinet member for economic development, said: "This is an absolute hammer blow to the local and retail economy of Redcar.

"I feel like M&S have let us down massively, the loyal, long-serving staff and the very loyal customer base there.

"Many of the staff have worked there all their life and I feel so sorry for them.

"This was the main anchor store for Redcar and it is devastating for the town.

"There has been no investment in the shop for years - the fridges were broken and the shop fittings haven't been updated for years. I believe now it was run down deliberately through lack of investment."

He said that assurances had been given by managers at M&S when Cleveland Retail Park opened that it would not affect the Redcar store.

M&S said it stood by its reasons given for closing the shop and said it was due to the increased outlet sales on the web and better stock level management, and not due to any other reasons.

A spokesman would not say if any assurances were given when the Cleveland Retail Park store opened, but The Northern Echo understands that no guarantees were made to Redcar & Cleveland council that the Redcar store would stay open.

The M&S spokesman said he had no further comments on Councillor Hannon's statements.

If the plan goes ahead, the Redcar store would close by the end of the summer.