WESTGATE department store in Watford town centre is to close down after just two years of trading.

The High Street-based store, which sells everything from hair dryers to holidays, will shut its doors to customers for good on Sunday, December 21.

Talks are now taking place with trade union representatives over potential job losses.

The Anglia Regional Co-operative Society, which owns the Westgate chain, said it would consider individual requests for voluntary redundancy.

Chief executive Neil Double said the store had been "under-performing" since it opened in 2001 because of poor sales, low profits and high leasing costs.

He stressed the closure had nothing to do with the staff, who were to be congratulated for their "hard work, commitment and loyalty".

Mr Double said: "The decision to close has only been taken after every effort has been made to maintain it as a going concern.

"This has not been possible and in these circumstances it has to be recognised that re- grettably it must close."

Disappointed staff – many who are facing redundancy unless they can be relocated – were told of the closure by general manager Peter Growcroft on Thursday, October 23.

Mr Double said: "Staff have been informed that, as a consequence of the closure, they are affected by a potential redundancy situation.

"We have entered into consultation with the trade union and staff on an individual basis.

"We will also give every consideration to alternative employment to avoid the need for redundancies."

The store will continue to trade as normal until the closure date and will honour any outstanding warranties, guarantees or holiday bookings.

The group is thought to be in negotiations with another major retailer to take over the site, but declined to comment further.

Business leaders predicted the store, which is spread over two floors, would not stay empty for long because of its central location.

Town centre manager Liz Jones said: "It's quite surprising that it's closing just before Christmas, but it's in a good spot and I'm sure another shop will take its place soon."

WORK to revamp The Harlequin shopping centre is on schedule, according to its manager.

Mr Michael Stevens said the food court had now been completely demolished and a new set of toilets were to be installed on the lower mall floor by mid-December.

The work is part of a multi-million pound revamp paving the way for two new restaurants and a flagship branch of Spanish fashion store Zara, which is set to open in Easter 2004.