Around 200 workers at Index stores across the region are waiting to find out if they still had jobs.

Littlewoods, which owns the catalogue store chain, yesterday announced it was shutting down 126 Index outlets, with the loss of 3,200 jobs.

John Gorle, national officer for shopworkers' union Usdaw, said: "This decision has come completely out of the blue.

"Our members who have contributed to the success of this company have been left reeling and utterly shocked by this devastating news."

Most of those to close are Index concessions within existing Littlewoods stores.

This includes sites in Darlington, Gateshead, Harrogate, Gateshead MetroCentre, Middlesbrough, North Shields, Stockton, and Sunderland. Each store employs between five and 15 staff.

However, 33 stand-alone stores will be sold to its rival, Argos, for £44 million.

Those in the region that could be part of the deal include shops in Hartlepool, Newcastle, Scarborough and York.

Argos will take on 800 Index workers and will also acquire the Index brand and website.

Last night, Littlewoods refused to say precisely which sites would close, as some workers on the late shift had yet to be informed.

At least 350 jobs at its distribution centre in Moxley in the West Midlands and 170 posts at its Liverpool head office are likely to be cut.

Littlewoods Group also has 1,500 staff at a call centre in Sunderland, with 100 working on the Index business. It is not known if these jobs will be affected.

David Simons, Littlewoods chairman, said: "The decision to divest the business has not been an easy one to make, but it is the only solution to a difficult and unsustainable situation.

"Our concern now is for those employees affected and we will work hard with them and the unions to achieve the best outcome we can."

Sir David and Sir Frederick Barclay bought Index when they acquired Littlewoods Group in 2002 for £750m.

The closure of the in-store Index sites fuelled market speculation that the brothers are close to agreeing the sale of their 119-strong Littlewoods stores chain.

Primark, the discount clothing retailer owned by Associated British Foods, is thought to be favourite to land the shops.

The Barclay brothers lost patience with Index, which has made a loss in nearly every year of its 20 year history, totalling well over £100 million. A full announcement on the job cuts is expected tomorrow.