A national chain has pulled out of a newly-developed Guisborough retail park.

Pets at Home has confirmed it will not be bringing a new store to Cleveland Gate Retail Park in the town, blaming the “volatile” property market.

The retailer had planned to open by the spring and had even recruited staff for the new store, who it says will be offered alternative positions at nearby existing branches.

The pet supplies store had previously quashed rumours it was having second thoughts about opening in the town, which surfaced on social media last October.

The £24m Cleveland Gate, on the site of the old Esco Foundry, already has various retailers on it including Marks & Spencer Simply Food and Aldi.

A spokesman at Pets at Home said: “We keep our opening plans under regular review as store openings can take some time to come to fruition and both the retail environment and the property market can be volatile.

“At a recent review of our store opening plans we decided, with regret, not to progress with our plan to open a store in Guisborough.

“We appreciate that this will be disappointing to customers who were looking forward to a new store and apologise for the change in our plans.

“Colleagues who have started training with us will be offered alternative positions in one of our nearby stores.”

Independent councillor for Guisborough ward, Bill Clarke, said: “Pets at Home have signed a long-term lease with the developers and are responsible or the vacant shop area which I understand they will start to advertise later this week.

“This means Pets at Home are out of pocket.

“Let’s hope this shop area can be filled soon.”

Ryedale Estates is leading the £24m Cleveland Gate development on Rectory Lane, which will feature workshop and employment space, offices, bungalows and 115 houses.

Construction company Harris CM, led by Guisborough man Danny Mulqueen, secured the contract to build the retail phase of the development.