EUROPE'S biggest garden centre is set to close after just 18 months - and a major supermarket is to take over the site.

The Lancashire Homes and Gardens site in Haslingden is set to cease trading at the end of September and has reached a deal with Tesco.

The shock move will lead to the initial loss of 180 jobs - but supermarket bosses are hoping that by spring 2005, 350 new jobs will be created.

Disgruntled employees were told on Thursday afternoon that their jobs were being axed.

The blow came just a year after the owner of the £8million gardening complex, Ged Clark, declared profits were up by 40 per cent.

Rossendale Council has already vowed to try and help those who have lost their jobs.

But a middle-manager at the Syke Street garden centre, who asked not to be named, said: "A lot of people who work here come from the same household. With mortgages and bills to pay, it's going to be a difficult time for a lot of people in Rossendale."

Bosses at Tesco say the garden centre, which opened in April last year, will cease trading on September 24, with work to convert the building starting shortly after.

It is expected that the Tesco multi-million pound development will open in late spring 2005, employing 350 staff.

Tesco spokesman Shaun Edgeley said: "We have been looking for a store in this area for many years and were surprised when the opportunity to buy this store was put to us by the owners.

"Tesco is keen that as many of the existing staff as possible will have an opportunity to work in the new store. We have pledged to guarantee priority interviews for all existing staff before the new store recruitment campaign starts and investigate if there are any suitable vacancies in surrounding Tesco stores. Planning permission is already in place so if we had a magic wand Tesco in Haslingden would be open tomorrow."

Manchester accountants Lewis, Alexander & Collins, who represent Lancashire Homes and Gardens, confirmed that the company was "ceasing to trade."

Mr Clark, who opened the centre when he was 50, lives in Rochdale and has carried out a number of developments across the UK and locally including Burnley's Chicago Rock nightclub in Hammerton Street - now Lava and Ignite.

Owen Williams, chief executive of Rossendale Borough Council, promised to work with the centre to help provide a rescue package for employees.

He added: "We are aware of the garden centre's situation and obviously if there are issues around job losses we would work with them in terms of identifying regeneration issues in the same way we have done with the manufacturing industry."

He said the garden centre had called him on Thursday to say it would cease trading and had received an offer to sell. That was followed by a call from Tesco, confirming they had purchased the site.

Peter Starkey, a Haslingden councillor, said: "This is dreadful news for the people who work at Lancashire Homes and Gardens. There have been rumours going round since the place first opened that it was going to be transformed into a night club and then into a supermarket."