“However, we will continue talking to the landlord about possible space within any new development but at this stage no new lease has been agreed.”

Yesterday’s announcement that Lewis’s may be closing its doors for the final time this summer was the latest chapter in Lewis’s eventful existence since London-born entrepreneur David Lewis founded it in 1856.

Surviving the Great Depression, the city centre premises fell victim to German bombing in World War Two.

But the building was rescued, and in 1957 the iconic “Liverpool Resurgent” statue of a naked man was added, becoming known as “Dickie Lewis”.

The store’s recent problems began in 2007 when it entered administration, only to be bought by Vergo when it appeared almost certain to fold.

Workers and shoppers were visibly dismayed at the announcement.

One restaurant employee, who would not be named, said: “In a meeting yesterday morning, we were told they would not let us trade while they redevelop the building.

“I have worked here for years and it is still sinking in. Everyone is in shock.”

A spokesperson for Merepark, which said 1,000 new jobs will be created with the Central Village scheme, added: “The tenancy agreement for the Lewis’s store, operated by Vergo Retail, expires this June (2010). For the last six months, we have been working closely with Vergo Retail to assess their needs and to try and keep them within the building.

“However, a tenancy renewal could not be achieved without jeopardising the overall programme of redevelopment work or affecting Vergo’s ability to trade successfully.

“Since the acquisition of the building at the end of 2007, we have been committed to the building’s constructive conservation and delivering a scheme which acknowledges the past and looks to the future.”

“This redevelopment will create up to 1,000 jobs, bring renewed vigour into this area of the city and complement the city’s Liverpool One retail offering.”