PSYCHE has already made its name in fashion circles. The minimalist decor, ambient atmosphere and wide selection of some of the world's best-known brands - not to mention a fly-on-the-wall documentary - have had shoppers beating a path to owner Steve Cochrane's door.

But the Middlesbrough store's profile, built up over 21 years, will rise even further with the fruition of plans adding a hotel complex to the building, transforming it into - as Steve puts it - "so much more than a department store".

The £5m project will see three floors built on to the three-storey building, taking the floor space to about 70,000sq ft and creating 65 jobs.

The store already draws shoppers from far afield with its constantly expanding collections of top designer names and Steve is hoping the development can help cast the Psyche net even further.

Already, Psyche stocks 150 brands for men and women, as well as offering a made-to-measure tailoring service. It sells a range of art and homeware, and houses a bistro, mini-spa, nail bar and live DJ.

The store stands alone in the region for the variety of goods it offers, but Steve sees the creation of the hotel complex as the truly distinguishing factor.

Steve, who has owned fashion boutiques on Teesside for 25 years, said: "It would really be unique. It's a real opportunity and would really be something special for Middlesbrough and the North-East."

The project promises to underpin developments in the Linthorpe Road district, already being hailed as a possible Covent Garden of the North.

The area, widely regarded as the town's designer district, with scores of boutiques beauty salons and coffee shops, is being rejuvenated with the impending demolition of about 2,000 run-down houses.

A spokesman for Middlesbrough Council said the demolition formed part of a major change in that area of the town and that Psyche was central to the development.

He said: "There are a lot of things happening in this section of the town centre, which really are spearheaded by Psyche and their plans. Psyche is a very well-regarded name and influence."

Steve is excited by the area's potential.

He said: "This is really becoming the economic centre for the south of the region. We have the deepest port in the region in Teesport, a fantastic art gallery in this part of town, that is nearly finished, and a really thriving district around here.

"There are plans in the making for massive arches over roads adjoining Linthorpe Road and paving work to be done, to mark the area out as being its own place, a kind of Covent Garden designer quarter niche.

"That is really how we see the future here."

While Steve believes the future of Psyche, which moved to the former Uptons department store building in 2002, is determined by its hotel plans coming to fruition, he is keen not to lose some aspects of his business with the change.

"We are trying to create something unique, so that it has the feel of an independent boutique on a massive scale," he said.

"But we pride ourselves on being accessible and 'for the people.' It's important people can come in here and not feel intimidated like they do in some shops.

"That is our ethos. Although we are always looking to make sure we have the latest fashions, the latest products, that is something we don't want to change."

The store explores all avenues to make sure it stays at the forefront of fashion, looking as far afield as the Far East to secure clothing collections from up-and-coming designers.

"It's probably fair to say I spend more time in Milan than in Newcastle," says Steve, who also recently visited fashion festivals in Singapore, Sao Paolo, in Brazil, and New York.

"But I absolutely love fashion and finding new things to bring to Psyche, and we have some things here you can't get anywhere else in this country."

New designers are about to be added to the range of 150 labels stocked by the store, including Daniel Yam and Vietnamese dressmaker Love On Earth.

Steve said: "I believe in the highest quality for everything we have here, and I make sure I oversee absolutely everything - the ranges we stock, the alterations we do, the hotel plans that we've drawn up.

"Psyche has already got a good customer base and we've earned a reputation, but something special could really be about to happen to us, and to this part of Middlesbrough."