TOWN hall bosses insist taxpayers will not be left out of pocket when Marks and Spencer pulls out of the council-owned town centre store in Clacton.

Marks and Spencer has earmarked the shop for closure early next year as part of a massive overhaul of the company.

It has been revealed that Tendring Council bought the Pier Avenue freehold last year for a sum of £3.1 million.

Marks and Spencer’s £150,000 a year lease was due to run until March 31, 2027.

Clacton Town Partnership chairman Graham Webb is concerned the closure could leave a black hole in the council’s finances.

He said: “I’m concerned that the council is gambling £3.1 million of our money.

“Twenty years ago it may have been a safe investment, but buying retail property in this climate is a gamble.

“They could hold M&S to the rest of their lease, but I’m sure M&S will try to buy their way out or look for a tenant to sub-let it.

“The council could be left out of pocket – news that M&S is leaving could see the market value drop like a stone.

“I can’t understand in today’s climate why anyone would take a punt of that size on retail property.

“The council should be doing all it can to keep them here.”

Mr Webb said the announcement that M&S would leave Clacton was a massive blow for the town.

He said: “There will be a huge drop in footfall.

“The thing that troubles me is that the M&S in Great Yarmouth remains empty three years after it closed – and a number of shops in the vicinity have now closed.”

“We could be left with a large empty shop in the middle of the town and the taxpayer could be liable for it in terms of insurance and repairs for years to come.” Neil Stock, leader of Tendring Council, confirmed the authority owns

the freehold to the site in Pier Avenue.

He said: “My first thoughts when I heard that M&S would be closing in Clacton were for the staff who work there.

“As owners of the site, the council is already working with M&S to find new tenants as soon as possible to keep Clacton town centre vibrant and an attractive offer for shoppers and other businesses.

“When we made the decision to acquire the freehold of the site we discussed precisely this situation arising as a possible scenario and we knew that we were as safe as we could be in respect of the investment of taxpayers’ money – we have a lease agreement in place with M&S, which will ensure the council is not left out of pocket.

“We will continue to do what we can, working with partners such as the Department for Work and Pensions, to support any M&S staff if they need it and we will continue to do what we can to ensure that Clacton maintains its position as one of the premier seaside towns in the UK despite the uncertain and changing retail climate.”

Last month M&S said it is closing the Clacton store in line with the opening of its new Foodhall in Walton.

All 57 employees in Clacton will be redeployed to nearby stores.