The owners of a major theme park said it will close down if plans to expand and develop the site are rejected.

At least 400 jobs will be lost at American Adventure in Shipley near Heanor, Derbyshire, if the theme park is shut down, they added.

Managers said visitor numbers have dropped by more than 30% in the last six years to less than 400,000.

They claim that a �15m expansion of the park, including a holiday village, is the only way to save the business.

Residents opposed

The new holiday village would create 100 jobs.

A planning application has been submitted to Amber Valley Borough Council, but many residents living nearby are opposing the plans.

"We want to develop a caravan park on the land, which is covered by scrub brush at the moment," a spokeman said.

The opponents say the proposed expansion would be on greenbelt land and would cause too much additional traffic.

The company is inviting people to a meeting at the park on Tuesday.