All staff have been made redundant as part of a developer's plans to spend £10 million creating a new street in the town centre.

Yesterday (Tuesday), developer Philip Hughes revealed that 200 jobs would be created if his ambitious scheme was approved by town planners.

"The Royal George will be closing because it is all part of the redevelopment of shops and offices," he said.

"Staff have been told that they are being made redundant."

Last night no-one was available for comment at The Royal George which is believed to be Knutsford's longest established hotel.

But speaking from his office in Chelford, Mr Hughes said he could not guarantee a future for the former employees. "That is not within our control," he said.

Scottish and Newcastle Breweries put The Royal George up for sale in December. Philip Hughes Developments are expected to complete the sale on Friday.

They want to build new offices, restaurants, apartments and shops to link King Street and Princess Street.

There will be underground parking for office workers and residents and up to 12 new units could be created.

Mr Hughes said several 'household names' wanted to move into new shops which will be built in George's Yard behind the hotel.

Yesterday, Mr Hughes said the development would mean some structural changes to the building, but promised it would be treated with care.

"I think this development will help Knutsford compete more effectively with other retail centres," he said.