BELEAGUERED shopping giant Tesco will no longer be creating 1,200 jobs in the North-East after announcing four of its proposed developments in the area have been scrapped.

Current staff across the region are also facing an uncertain future with the retailer also confirming it is to close 43 stores nationwide.

The troubled company had been looking at new multi-million pound stores in Stanley and Peterlee in County Durham, near the Metrocentre in Gateshead and at the seaside town of Amble in Northumberland.

But today’s announcement means they have all been abandoned.

Chief executive Dave Lewis: “Our performance as a business has fallen significantly short of where we would want it to be and my absolute imperative has to be to protect the future of our business for around 300,000 colleagues we employ in communities all over the UK.

“I know this news will be a real disappointment to many people in those communities and we’re extremely grateful for the support we’ve received for our plans.”

Kevan Jones, MP for North Durham, has called for urgent action to be taken at the site in Stanley, where 250 jobs were promised.

He said: “I was of course very disappointed to learn that Tesco are unable to proceed with the proposed store in Stanley, as I believe it would have been very beneficial for the town.

“However, it is vital now that Tesco, as a matter of urgency, work with the local community to find a solution with regard to the site, to ensure that it does not remain a blight on the town centre.”

Easington MP Grahame Morris, whose constituency covers the Essington Way site in Peterlee, said the decision would be a major blow to the town, with 400 job opportunities lost.

He said: “Tesco still has a responsibility to the community and they cannot allow the site to remain in its current state indefinitely.

“I hope they will do all they can in order for the site to be utilised by another developer so that we can continue our efforts to attract new business and investment into Peterlee.”

The proposed Tesco, near Asda and Ikea at the Metrocentre, would have created 400 jobs with a further 150 in Amble.

Shopworkers’ union USDAW said it was a "worrying and difficult time" for members and meetings were being arranged to discuss the situation.

Tesco has not revealed the locations of the 43 stores to close but Mr Lewis said a significant proportion are likely to be ‘Express’ convenience shops spread across the country.

Employees will learn full details by April.