The company said it could return to Swansea in the future

The House of Fraser announced on Wednesday that it would be closing its David Evans store in the city.

The company said the outlet on Princess Way was still making a profit although it was no longer viable within its business plans.

David Evans has been trading there for 140 years.

A total of 245 jobs will be at risk when the store closes next January.

The 91 staff employed directly by the House of Fraser face redundancy but some may be offered alternative work at the company's stores in Cardiff and Cwmbran.

The other 154 staff are employed by retailers which operate within the shop like Armani and Estee Lauder.

This isn't a reflection on Swansea, it is purely a business decision Spokesman for House of Fraser

A spokesman for House of Fraser said it was the "beginning of the formal consultation process for the closure of the David Evans store".

He said: "This isn't a reflection on Swansea, it is purely a business decision.

"If the right opportunity came at the right time there would be no reason why we would not want to come back to the city in the future."

'Disaster'

David Evans opened its doors as an independent store back in 1865 and later became part of the House of Fraser.

Staff were told about the job losses on Wednesday.

Property developers Rockcliffe are in talks with the House of Fraser about the future of the city centre site.

Developers behind the Castle Quays shopping project say the change of ownership will "pave the way" for the first phase of work starting in Spring 2005.

A Swansea council spokesman said: "Whilst this announcement is disappointing for the staff at the store, the decision was not wholly unexpected, and we are confident the change of ownership will drive forward the Castle Quays scheme."