SOUTHAMPTON'S Habitat interior design store is to close after bosses decided it was "no longer economically viable".

The chain, which is owned by the same group as Swedish interior design giant Ikea, said it was in talks with a fashion retailer to take over the site in WestQuay shopping centre.

All 24 staff are to be offered alternative positions at other Habitat stores in the region after the doors finally close on July 9.

Signs proclaiming 20 per cent discounts across the store are already in place in the windows of the major ground floor store.

A company statement said rising rents were behind the surprise closure.

It read: "Store closures are always regrettable, especially when those stores have been in an area for several years and have enjoyed strong relationships with regular customers and the local community. Unfortunately occupancy and related costs have continued to escalate over the years to the point where it is no longer economically viable to remain at the site."

Andy Collyer, general manager at WestQuay, which is owned by property giant Hammerson, said: "As a centre we continually look to improve and evolve the mix of stores we offer to all our customers and are currently in negotiations with a major retailer to take over the unit.

"Rents are determined by a number of factors including location, environment and facilities. Retailers understand that prime shopping centre units, in leading regional destinations attract higher rental values than high street equivalents."

Founded by Sir Terence Conran in 1964, Habitat is today part of the IKANO Group, a private company owned by the Kamprad family. Ingvar Kamprad founded Ikea in Sweden in the 1940s.

Ikea have long been linked with a move to Southampton.

Proposals to site a giant store on both the former BOC site in Millbrook and the former Pirelli cables in West Quay Road have both foundered.

The iconic Swedish brand still maintains it is keen to launch a store somewhere on the south coast and is looking at both Portsmouth and Southampton.