THERE are fears for the future of Paignton town centre after the closure of Rossiters was announced.

Business leaders and politicians are calling for the Palace Avenue site to still be used for commercial purposes, not housing, or else the town will suffer.

The news that the 150-year-old Paignton shop will close in January left staff in tears.

And it added to a triple-whammy of bad news in Paignton after it was revealed that the Crossways shopping centre is now 80 per cent empty; the introduction of Torbay's first parking meters in Palace Avenue and news that Tesco Express is opening in Preston.

Adrian Sanders, MP for Torbay, said: "It would be very, very sad if we lost an area of town that provides 90-odd jobs and it became apartments.

"I hope that whatever happens, it is replaced by an employment opportunity.

"Torbay tends to be the first to go into recession and the last to come out. The only way to avoid this trend is to remove any barriers, one of which is transport.

"We also need to get an education system in place that will equip youngsters for a successful future.

"The new college is coming together, which is good, but we don't seem to have an economic plan in place to help diversify our employment options.

"What we have been seeing in the past few years is a number of family-owned businesses either going out of business or being taken over by a national company.

"That has two impacts — it changes the feel of an area so that it's difficult to tell one from another, and it means that profits go out of the town.

"That's not to say I'm against national chains, because they bring employment, but through them we won't become prosperous in the future."

Nigel Rossiter, whose family has run the outlet for 150 years, said there is not enough business to sustain operations.

Anthony Steen, MP for Totnes, said: "I would have thought there would be a push to change the site from light industrial to housing.

"Having said that, the housing market isn't too hot at the moment. We need to create jobs. We can't keep building more and more houses with nowhere for people to work.

"The fact is that at the moment Paignton's not flourishing. It's being somewhat neglected, so we need a long-term plan."

Rossiters employs 29 full-time staff and 62 part-time.

Gordon Oliver, chairman of Torbay Hospitality Association, said: "It's a devastating blow for Paignton. Crossways is already 80 per cent empty.

"It all shows that while tourism is allowed to reduce, so will our economy. The more the authorities penalise the car, the worse things will become. Torbay relies on people coming here by car.

"We'll be the dormitory of Devon. Torbay's being filled with residential property but no-one will have a job.

"The fact is we're too small to be a unitary authority. We should never have come out of Devon County Council. Torbay will continue to decline if something doesn't change."

The flagship shop is due to close its doors on January 31, 2009, and Mr Rossiter said the priority is to help employees secure new jobs.

Ruth Pentney, ward councillor for Clifton with Maidenway, said: "It's absolutely terrible and a great shame for the people who've lost their jobs.

"Rossiters is one of our most established traders, so the news is appalling. Trying to fill that space with something comparable, won't be easy, and the parking meters for Palace Avenue won't help matters.

"It's a big blow. All we can do is try to attract someone to take over the site."

Rossiters said the property would be put on the market for sale, with redevelopment an option.

Ian Doggett, the other ward councillor for Clifton with Maidenway, said: "People are horrified. It's really awful. It's a bad day for Paignton. We seem to be getting hit left, right and centre.

"Where do we go from here? That shop is unique. There are things you can get from it that you can't get anywhere else.

"I wasn't happy about parking meters going into Palace Avenue, because there are a lot of businesses there on a tight enough budget as it is.

"Not only is it a great shop but there's also a massive social side to it. A lot of older people meet up in there."

At Hoopers department store in Torquay general manager Annie Roberts said she was 'very sad' about the closure: "None of us want any shop to close."

But she said business is good for Hoopers' Torquay harbourside branch: "The retail climate is tough for everybody.

"We have had a very good August. I have been very pleased. We have cleared some old brands and stock and we have some fabulous new brands willing to invest in Torquay.

"You have to stay one step ahead, particularly with the growth of internet shopping.

"I am very sad about Rossiters. They had obviously done a lot of work to attract their target market."

Trevor Boobyer, director of Austins in Newton Abbot, said: "It's very sad. We have known them for some 40 years. We feel for them and for the staff. It is sad for the staff and for the community."

Austins has this year invested more than £1million on refurbishing its store, and Mr Boobyer said the investment was helping them through the credit crunch : "After that investment in our upgrade we would expect to do better than average, and we are."