Staff at a 189-year-old department store were told they were being made redundant after being rounded up in a car park by a bogus fire alarm.

Workers at Robbs, in Fore Street, Hexham, Northumberland, gathered outside after the alarm was deliberately set off to clear the store of customers on Wednesday morning.

In the car park they were made aware of the impending bad news.

Shortly afterwards, they were read a statement telling them the store - which has been in Hexham since 1818 - would be closing in less than two weeks.

The job losses, which total 140, follow unsuccessful attempts to find a buyer after parent company Owen Owen went into administration earlier this year.

Hexham MP Peter Atkinson described the way staff had been told they were going to lose their jobs as brutal. He said: "I understand that the alarm was sounded to gather them all in the same place, where they were given notice of redundancy.

"It is a rather brutal way of doing things, especially when you consider that many of the staff have given many years of loyal service to the store."

Workers at Robbs were ordered not to speak to the Press about the closure of the store, but a number of sources did confirm they had been told in the car park that they were to be made redundant.

One worker, who declined to be identified, said: "The way we've been treated is appalling and to find out in this way has infuriated a lot of people."

Yesterday, Robbs management were referring all calls to Hill and Knowlton, a London PR firm working for Kroll, the administrators.

A Hill and Knowlton spokeswoman said: "It is at the discretion of the store management how the staff are given the news. ... The fire alarm was set off to clear the store of members of the public."

Kroll said talks with a potential buyer had collapsed and so the store would close.

Partner at the firm Philip Duffy said despite interest from buyers, no deal was likely to be struck. "It is disappointing that a buyer for Robbs has not been secured to date. Without a decision from interested parties, it makes the continuity of trade non-profitable and we will therefore be forced to close the store on May 12. A final stock sale will begin in store.

"We appreciate that this is a difficult time for everyone involved and I would again like to thank all employees, store concessions and customers for their continued support during the administration process."

Owen Owen also owns Joplings store in Sunderland as well as a flagship Lewis store in Liverpool.

Mr Duffy said he hoped a buyer could still be secured for the Sunderland shop, although the same deadline applied. He said: "Contract negotiations are progressing with one interested party regarding the sale of Owen Owen's stores in Liverpool and Sunderland. We remain hopeful of securing a sale of these two stores. However, if a deal is not reached, we will be forced to close the stores on May 12, so in the meantime we are therefore starting the final stock sales in these two stores from today."

News that Robbs was closing sparked a rush from customers keen to take advantage of special offers. The food hall was cleared of wines and spirits within hours of them being marked two for the price of one.

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'I was stunned when I heard. It is part of the town's history'

When the doors close at Robbs for the last time it will mark the end of an era.

Yesterday, people living in Hexham voiced surprise and sadness at the closure news.

Ronnie Williamson, 76, of Eilanville, said: "Obviously it has been here as long as I can remember and it will be a big loss for the town.

"I can remember it being in various different places in Hexham.

"It used to have a funeral parlour as well, but that was sold off. It has been a big part of the history of the town."

John McKie, 78, said: "It is a big part of Hexham and it will be a shame when it has gone. I was surprised when I heard it was going to have to close, especially because of the post office being there. It is the main part of Hexham."

Even those who have not lived in the town for long are aware of the history and tradition of the store. Barry Scott, 40, of Woodlea Crescent, said: "I knew about it before I even moved here a few years ago.

"I was stunned when I heard it was closing down and it is a shame because it is part of the town's history. Goodness knows what it will become. It would be nice if someone took it over as a going concern and you'd think it would work because it's in such a nice spot."

Dorothy Reid, 70, of Crawcrook, County Durham, said: "I will miss the store, but you still hope that someone will take it over."

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Post office evicted

The expected closure of Robbs department store does not just mean the loss of one of Hexham's oldest and most iconic shops.

A number of other shops, including the town post office, are also in the building and concern is growing for the essential service.

MP Peter Atkinson said: "It is the end of a long era. It takes away part of the history and character of the town and that's very sad.

"There will be quite a lot of ramifications, but the post office is something I will be concentrating on. As yet, we don't know what is happening, but obviously we need to have a post office in Hexham."

Owen Owen, Robbs' parent company that has gone into administration, sold the 100,000sq ft store to Scottish property company Buccleuch last September for £7.7m in a sale and leaseback deal.

A butcher and an estate agent are among businesses trading from the building.

Tynedale Council chief executive Richard Robson said: "This is obviously extremely disappointing news. We are initiating discussions with the property owners and are also in discussion with the Post Office to establish whether it would be possible to maintain the franchise in its current location or, failing that, to find suitable alternative premises in or near the town centre."

A Post Office spokesman said: "We are doing everything we can to maintain services for our customers in Hexham, either in the existing building or by finding alternative premises."

It is not known what will become of the Robbs building.