PLANS to redevelop the Mr Kipling cake factory site in Eastleigh have attracted interest from potential retailers.

Speculation has been growing over the site since the bakery giant dropped the bombshell news that it was pulling out of town.

The retail industry had emerged as the front-runner in the race to buy up the site, near the M3.

Eastleigh council leader Keith House confirmed the interest.

"The retail industry is sniffing around this site like crazy," he said.

However, none of the retailers' names has been disclosed because the information is commercially sensitive.

About 650 jobs are set to go when Manor Bakeries switches its operations from its Eastleigh plant to Yorkshire by the end of the year.

The Leigh Road site will be available for redevelopment by April 2006.

Council chiefs say they do not want to see the site smothered in retail sheds but are eager to see the lost jobs replaced.

The council executive is backing a development blueprint for a mix of employment that would include industry, warehousing and a business centre.

Executive councillor David Airey said: "We should attract business on this site which will provide real jobs."

The council also sees the Manor Bakeries redevelopment as providing an opportunity to relocate the Hendy Ford car showroom and workshop from Bournemouth Road, Chandler's Ford.

That has had a cool response from the Hampshire-based Hendy Group which is already planning to invest millions of pounds in its Bournemouth Road centre.

Hendy Group managing director Paul Hendy said: "We are aware that the Manor Bakeries site in Eastleigh is potentially available and of course we always consider every option in terms of our future development plans."