IT promised to create 100 jobs in a Hampshire town but instead left residents dismayed as it pulled out at the last minute.

Now Debenhams is facing fines that could run to hundreds of thousands of pounds after the High Court backed the owner of Fareham Shopping Centre in a breach of contract dispute.

The court ruled Debenhams was not entitled to break its agreement with centre owner Dominion and abandon plans to open a branch in a purpose built 20,000 sq ft new store.

The move in March 2009 broke a 15-year deal worth £320,000 annually, triggering a claim for damages from Dominion.

Debenhams blamed a “contractual dispute” for the abrupt change of heart.

It was described as a “devastating” blow by Fareham Borough Council leader Sean Woodward, who had hoped the store would add to the appeal of the town centre.

Just weeks before about 400 people had queued up outside the store to apply for the 100 jobs it was creating.

Then, days after successful candidates learned they had landed a job, they received a letter informing them their new positions no longer existed.

Many of the candidates were former Woolworths staff who had just been made redundant after the collapse of the high street name.

At the centre the new stores have largely stood empty ever since, but south coast based department store chain Beales opened a 20,000 sq ft branch in the centre earlier this year and said then it was “testing the water” for an even bigger shop.

Debenhams now has to wait for a further hearing to determine the level of the payout.