MARKS and Spencer is considering opening an out of town store at Middlebrook, Horwich.

The troubled retail giant is believed to be about to sign a deal to take over the unit currently occupied by the Middlebrook Tavern.

A spokesman for Marks and Spencer said: "We are looking at the site but there has been no firm decision made as yet and it is likely to be some time before anything is decided."

The Middlebrook Tavern, owned by Gloucester based Mill House Inns, is due to leave Middlebrook within the next few months after failing to agree terms with landlords Emerson in a rent review.

As a result the bar, which was one of the first businesses to move into the retail park in November 1997, will shut. It marks the end of pubs at the development following the departure of New Orleans to make way for Next.

Mill House Taverns operations executive Andrew Knight confirmed they expect to shut once Emerson has tied up the deal with Marks and Spencer. Three management staff at the pub have already been relocated and Mr Knight said jobs at other Mill House Taverns would be offered to the remaining 15 to 20 full and part-time staff.

He added that the company was sad to be leaving Horwich and would like to continue operating in the Horwich and Bolton areas.

He said: "Middlebrook has been good for us, particularly in the last two years."

There is concern, however, over the effect such a move would have on town centre trade in both Horwich and Bolton.

Bolton town centre manager Cathy Savage said: "I have heard the rumours and have mixed feelings.

"It would be a potential threat to the town centre and there is the possibility it could take business away.

"But I also appreciate that Marks and Spencer have to capitalise on the retail industry and it would offer something extra for visitors to Bolton and the Middlebrook site."

Horwich councillor Bob Ronson said: "When Middlebrook was built restrictions were put in place to protect businesses in Bolton's small town centres, like Horwich, but it is rapidly changing from what it was originally meant to be.

"I would be concerned if Marks and Spencer did move there because of the competition for local traders. I dare say local residents would be very happy about it, but it's a kick in the teeth for town centre traders."

Kath Sellers, of Andrea Leach Sports in Horwich, said: "The sports side of my business has taken a nose dive due to all the retail outlets at Middlebrook in general. Marks and Spencer will be another knock to business, as I also sell childrenswear which could be affected."

Marks and Spencer has been the subject of a bitter takeover battle between billionaire businessman Philip Green and the Marks and Spencer board which rejected his bid to buy the company last week.