THE owner of the New Palace landmark in New Brighton fears he will be put out of business by last-minute changes to a major redevelopment scheme.

The £60m regeneration project to breathe new life into New Brighton is nearing completion, with Morrisons supermarket due to open this month and a cinema later this year.

But David Wilkie, whose family has owned the landmark New Palace, on the seafront, for a century, says changes approved by Wirral Council’s ruling cabinet to the scheme will have devastating consequences for his business.

He has also warned that the site of the historic Art Deco building has already proven attractive to potential investors for apartments – a route he may be forced to consider, although he insisted he wants to protect the jobs of 65 people who work for him by continuing.

The cabinet approved an application by Liverpool-based developers Neptune to use part of the site as a children’s “soft play area”, which Mr Wilkie says is in direct competition with his business, which he says brings in 250,000 visitors a year.

Previously, Neptune had said the building would be used as a health centre and gym, but told the council there was little or no interest from operators in this type of business.

Neptune’s Rob Mason said the change to a soft play area would cost them “a lot of money” and that if an operator was interested in running it as a gym and open air pool “we would clearly be foolish not to look at it”.

He said there were two possible gym operators in talks with them, but it was increasingly likely the site would become a children’s play area. He said: “We are looking at a three-week window to consider it and will keep all options open.”