TOWN Hall bosses are set to launch a working group to “redefine” Clacton town centre following Marks and Spencer’s announcement it will pull out of the town.

The retail giant has earmarked its Pier Avenue shop for closure early next year as part of a massive overhaul of the company.

Tendring Council, which bought the freehold of the shop site for £3.1million last year, insists the taxpayer will not lose out as there is a still a lease in place.

Council leader Neil Stock said a cross-party working group, which will also include businesses, will be set up to look at ways to develop and improve Clacton town centre.

He said it was disappointing news that Marks and Spencer is moving out of the town, but that the situation in Clacton reflects the national picture.

“It is a difficult time for high streets up and down the country, it is hard for them to know how to exist in the age of online shopping,” he said.

“But Clacton is completely different. People don’t come here necessarily to shop, it is a premier seaside resort and that is what attracts people.

“If the big retailers were pulling out of Clacton and staying everywhere else then I would be worried, but they are not.”

Mr Stock said the group could look at a range of issues, such as pedestrianisation versus short-stay parking, and what it can offer local residents.

Holland councillor Joy Broderick called on the council to talk to Marks and Spencer over the possibility of only closing the clothing side of the store and keeping its food hall open.

But officials revealed the firm said the layout and size of the Pier Avenue store does not lend itself to just one use or the other.

Ukip group leader Mary Newton called on the company to open a food hall at Clacton Factory Outlet, where it already has a clothing outlet.

The company is closing the Pier Avenue store in line with the opening of its new food hall in Walton and it is hoped all 57 employees can be redeployed to nearby stores.

Mr Stock said conversations are on-going between the company and the council’s regeneration team, but they are “commercially sensitive”.

He added: “Marks and Spencer’s food offer in particular is really attractive – and that is one aspect of their businesses that is clearly successful.

“We would be very disappointed to lose that completely from Clacton.

“It’s great for Walton, but I don’t think large swathes of people from Clacton will make their way over to Walton just to get a Marks and Spencer’s dinner.”

“We do want an offer in Clacton and we are working toward achieving that.”

Labour group leader Ivan Henderson said councils are “taking risks” investing in properties as they have been forced to bring in cash from other sources due to the Government cutting its grant to local councils.

He fears that bad investments could lead to cuts in local services.

But council chief executive Ian Davidson said the council would not be left out of pocket by the closure of the Marks and Spencer store.

He said: “They are still legally required to pay their lease costs on an ongoing basis and if they sub-let that they are still required to pay us the full lease.

“The percentage return we are getting on our investment is still good.”

He added that the working group could help to “redefine” Clacton town centre, which he said could have a more mixed offer in the future.