A MAJOR department store in the North-East will permanently close after failing to agree new terms with Intu Metrocentre.

Debenhams in Metrocentre, Gateshead will not reopen in line with the rest of the chain next week, it has this afternoon been confirmed.

A spokesperson for Debenhams said: “Sadly we have been unable to agree terms with the landlord and as a result this store will not be re-opening in line with the rest of the chain next week.

“We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication.”

The retailer, which recently closed its Stockton store, was set to close a further five branches including its South Shields store later this year.

Its Metrocentre store had never been on this list nor was it earmarked for closure.

But it emerged this afternoon that staff had been informed via conference call that the Gateshead store was closing for good.

Speaking out on social media, staff members spoke of their upset with one 'devastated' over the suprise decision.

One worker said: "In the almost seven years I have worked at Debenhams Metrocentre I can honestly say I couldn't have chosen a better bunch of people to work with.

"I'm going to miss you all more than you know. Thank you to you all for the laughs it really was one of the best jobs I've ever had."

Another said: "To everyone I've worked with over the past couple years, it's been an absolute pleasure. They say it's the people that make the job and they're certainly right. 

"I am beyond devastated, but wish everyone the best of luck for the future - finding employment and staying safe."

Last month, Intu Properties warned that it could go bust if it cannot raise further funds as it slumped to a £2 billion annual loss.

Intu Properties saw losses widen from £1.2 billion in 2018 and was forced to write down the value of its shopping centre sites and properties by £1.9 billion after recent retail sector woes.

The store in Newcastle's Eldon Square remains unaffected by the decision.

A spokesperson for Intu Metrocentre said: "We are still in discussion with Debenhams and their administrators on the future of their stores across our portfolio, which have to date been positive.

"This is a lengthy process and we are in the final stages of agreeing terms. Naturally with a portfolio of large format stores such as these, they offer great opportunities for alternative uses and we remain optimistic about the future of this valuable retail space."