Chamber of Commerce president Keith Slater fears the unsold Allders store could become a 'retail hole' in Oxford city centre.

The future of the flagship department store and its 140 staff is hanging in the balance this week following Primark's shock decision to withdraw its takeover offer.

The budget clothing chain had already discussed new jobs or redundancy packages with staff, but pulled out of the deal at the eleventh hour after finding a clause in the lease which states it can only be run as a department store.

With most of the stock now sold off and even shelving and display units up for grabs, staff have been told a new buyer is being sought.

But with the store due to close on Wednesday, Mr Slater is worried about the repercussions of a huge empty property in the heart of the Westgate Shopping Centre.

He said: "Not only is Allders an attraction that brings in shoppers, but it is also an important store in the Westgate Shopping Centre and it's not good to have a retail hole in the middle of a shopping centre.

"Allders is obviously in a prime site and hopefully this will mean a buyer can be found quickly.

"But the question is, who will take it on if there is truth in the rumour of a clause stating it can only be used as a department store?

"We are already hoping to have John Lewis signed up as part of the development plans for the Westgate Centre -- it could be that they become interested in the Allders site.

"It is not exactly the best time to try to attract a new department store into Oxford, as they are all having a difficult time."

Forty parties were said to have expressed an interest in the store alongside Primark, but it seems that many have since gone cold on the idea.

A House of Fraser spokesman said: "We were interested, but that's no longer the case."

A spokesman for the private equity firm Alchemy Partners, said: "We looked at a possible buyout of all the Allders stores but that has been and gone and we are no longer interested."