A POUND shop is to open in place of Blackburn’s oldest store, which closed in January after 169 years.

Critics said it was a sad day as Pound Craze prepared to open in the former home of Mercer’s, the much-loved toy and homeware shop on Northgate.

And a former member of staff said she was “gutted” at the news.

The manager of Pound Craze, which currently has an outlet in Church Street, said he was surprised to secure a lease on a building with such “heritage”, but promised to restore the building, which is in need of repair.

It comes as planning permission for the £700milion Tithebarn project in Preston was granted, which is set to have a John Lewis store, new Marks and Spencer and a dozen other shops.

Council bosses in Blackburn said they had tried to buy the Mercer’s building, aiming to encourage a “quality” tenant, but were priced out of the market.

Fleming Square hairdresser Jeff Stone said it was a “devastating” development.

He said: “People did not value Mercer’s enough when it is here.

“It is further proof that the people in charge of this town should hang their heads in shame.”

The closure of Mercer’s was met with widespread dismay by traders and politicians, with the Chamber of Trade saying it was a ‘catastrophic’ blow to the town. Bosses blamed town centre traffic problems, fuelled by the recession, for the drop in trade.

Managers held talks with council bosses who tried in vain to persuade them to stay in town.

The firm’s trade outlet in Pump Street remains open, and a new store, called Mercer’s Toys, has since opened in Darwen Street.

It is unconnected to the original business.

Store manager Rose Fowler, who spent 15 years working at the Northgate store, said: “I know it’s an old building, but it didn’t deserve that. I was gutted when I heard, and couldn’t believe it.”

Blackburn with Darwen council leader Michael Lee said: “I would rather have something there than nothing, but I can’t say that a pound shop is what we were looking for.

“But it is a commercial enterprise, and if the owners want to let it to someone it is up to them.

“We did ask about buying the building, but it was too much. I would have liked to use it to bring someone different in.

“But we have got the toy shop and the cook shop in Darwen Street.We did everything to try and persuade the original owners to stay, and did everything short of tying them down.”

Darwen Street jeweller Phil Ainsworth, of the town centre marketing committee, said: “There is a need for all types of shops, as long as we don’t get too many pound shops, and this is not an extra one.

“It is a shame that such an iconic building in Blackburn town centre is being taken over by a pound shop but at least it’s one that exists already in the town centre.

“From a building point of view it would have been nice to see it taken over by another retailer.”

There are currently three dedicated pound shops in Blackburn town centre - Sound as a Pound, on Railway Road, Poundworld, in The Mall, and the current Pound Craze store on Church Street as well as a number of discount stores.

Yesterday shoppers gave a mixed reaction to the news.

Sam Whalley, 32, who lives in Ewood, said they were “fantastic” for buying things for his children, while 21-year-old Nicola Sharp, of Galligreaves, said: "I use pound shops myself but enough is enough. It doesn't look great for Blackburn if our town centre is full of them, it makes us look scruffy."

Posters in the windows of Pound Craze advertise “crazy opening offers” when the new store opens on Friday, July 31.

Nasiruddin Patel, the manager of Pound Craze, said: “The rent is much cheaper than where we are now and we thought it would be a good place to move into.

“When it came on the market we were surprised to get it. I thought with its heritage they might not let it to us so we were grateful to make it in.

“But we did tell the owners that if we moved in we would be spending money doing it up. It’s going to look the part.”