LIVERPOOL’S iconic department store, Lewis’s, is set to close down with the loss of nearly 300 jobs.

With its three-year lease up in June, the Vergo Retail-owned shop will leave the Ranelagh Street site as developer Merepark proceeds with its £160m plans to create a new retail, leisure and hotel complex behind Central station – Central Village.

And Central Village is now vital in leading redevelopment around the Lime Street quarter, city leaders said last night.

Council leader Warren Bradley said it was a “sad decision”, but added: “Credit must be given to Vergo for making this decision having realised that the regeneration and development of that area of the city centre is crucial to Liverpool.

“When you compare it with Liverpool One, you can see that it was in desperate need of a revamp and it was only going to get harder and harder.

“I hope that it is only a temporary closure and that in future we are able to celebrate it re-opening.”

The Central Village plan will go back before city planners today.

Jack Stopforth, chief executive of Liverpool Chamber of Commerce, said: “It underlines the urgency for the regeneration of Renshaw Street and the extension of Lime Street.”

Lewis’s was offered room in the Central Village development, but co-owner David Thompson admitted tough retail competition from outlets in Liverpool One meant yesterday’s announcement could mean the end of the store.

About £50m-worth of stock remains in the department store as its vast closing-down programme begins today, with shell-shocked employees coming to terms with the news.

Mr Thompson said: “In terms of the future, there is space available for us in the new development.

“We have not yet come to an agreement on a new lease. We are still looking at whether there will be a credible retail offer to draw people away from Liverpool One. There is no guarantee we will reopen, but we would like to be in a position where we can.

“It has now become apparent from Merepark that once the scheduled works commence, it would be impossible for us to continue trading from within this building.