A MAJOR retailer is set to leave York city centre after permission was given to turn its rented shop unit into a restaurant.

Laura Ashley’s shop on Davygate will close within two months, leaving the company with only an out-of-town presence in York, at Monks Cross.

The company has confirmed that its landlord’s decision to convert the property into a restaurant means it is losing its city centre location.

A company spokesman said: “It is with regret that the Laura Ashley city centre store in York will close by May 2015 as we have been notified that one of our landlords has obtained permission to convert the store into a restaurant. We are in consultation with all employees affected by this closure and we aim to re-deploy where possible.

“We look forward to welcoming new and existing customers to our newly-opened York store on Julia Avenue, Monks Cross, which showcases our range of fashion, decorating, furniture and accessories.”

The current shop has entrances on Davygate and Little Stonegate, and is made up of two different units with different owners, with the more lucrative home furnishing department run out of Little Stonegate.

In July last year, a “change of use” planning application for Little Stonegate made by landlords Rushbond Plc was turned down after Laura Ashley’s lawyers warned that its shop would have to shut if it lost that unit.

But Rushbond launched an appeal, and in September last year planning inspector Elaine Worthington ruled in their favour and gave the planning permission.

She said that the restaurant plan would bring the whole of 11 Little Stonegate back into use, not just the ground floor portion Laura Ashley use, and there were other units available if the company wanted an alternative site.

And it has now emerged that a licensing application, made by Caribbean restaurant chain Turtle Bay, was approved in last December.

Although Little Swinegate lies in the “Cumulative Impact Zone” - which brings tougher rules on assessing crime and antisocial behaviour which could be caused by new pubs and bars - a council spokesman said no objections were received for the licensing plan from the police or ward councillors.