NELSON town centre faces a ‘devastating blow’ after a high profile store said it could close.

Argos confirmed the future of its Nelson store, in The Victory Centre, is under review, but said that no ‘firm decision’ had been made.

The catalogue shop said the majority of staff at its Nelson site were on short term contracts, which would end with the closure of the store, and that the ‘few’ employees on permanent contracts would be offered posts at nearby stores if it does close.

Argos refused to disclose how many people were employed at the store, but it is thought to be around 40.

Nicholas Emery, of the Nelson Town Centre Partnership, said it would be a ‘devastating blow’ if the store closes.

He said: “We’re struggling to get anyone to come into the town centre, so the worst thing hat could happen is that the existing firms leave. If they could just hang on a few months while the work to reopen the town centre is finished they might see a change with passing trade.”

Mr Emery said that when Coun John David opened The Victory Centre, he described it as Nelson’s ‘jewel in the crown’.

But the centre has never had full occupancy and the Argos store is surrounded by empty units, he said.

News of the store’s future being under review comes less than a month after the shock announcement that the Tesco store, in Leeds Road, which only opened in February 2008, is to close before the end of the month.

Coun Eileen Ansar, who owns the Slick clothing store in the town centre, said: “When they opened the new Argos store in Colne they said categorically that the Nelson store was not going to close.

“With the work to reopen the road through the town centre we are trying to make the area prosperous again and we want Argos to be a part of that.”

An Argos spokesman said: “Argos can confirm that the future of the Nelson store is under review at the current time. No firm decision has been made.

“We have advised colleagues employed at the store of the potential risk of closure to ensure that any opportunities for permanent employment at local stores are not overlooked in the meantime.”