WORK is under way on a new bar and restaurant to replace a well-loved family-run shop in York city-centre.

The former Army and Navy Stores at the top of Fossgate is being turned into Sutlers, a venue with a ground floor bar and first floor restaurant with room to cater for 150 diners.

The store closed in the summer of 2012 after 93 years in the city, and builders have now moved into the empty space.They hope to be open by the end of the year.

Andrew Moller, of P.E.B Architects, the firm behind the plans, said: "The existing shop fronts have been removed and we are in the process of getting everything finalised through the planners to get three new shop fronts, but retain one which is part of the listed building.

"At the moment we think there will be about 130 in the restaurant but it can accommodate up to 150.

"We are hoping to be open before Christmas."

The plans are being spearheaded by Cleethorpes businesswoman Rachel Greaves, who submitted a planning application to City of York Council with the hope of altering the premises last year.

Richard Beal, the owner of the bar, said: "Working with the council and taking into consideration the historic nature of the building, we are investing heavily into bringing what was once a popular store back to life.

“Having spent a great deal of time designing the internal layout we started work on the renovation of the property in August and hope to be open before the end of this year.

“Our goal is to create a welcoming environment for anyone who would like to take time out for a coffee, good food or a drink to enjoy with friends.

“We are really excited about this development and are looking forward to sharing more details about our offering and opening over the coming weeks."

Sutlers will be the latest in a string of new bars or cafes to open in Fossgate in recent years. City-centre councillor Brian Watson has voiced concern that too many businesses are being turned into pubs, bars or restaurants, and police have also said that York city-centre has reached saturation point for licensed premises.