Details of a new department store which is set to open in the former Allders building have been revealed.

Croydon Village is set to open in September after the landlord of the premises in North End, Minerva, struck a surprise deal with Newcastle-based department store Metro Outlet.

The company - that describes itself as a discount department store chain - has already gone into a recruitment drive with more than 300 jobs on offer.

On Friday and Saturday hundreds of people filled in job applications for the new store, and Metro Outlet is hoping former Allders employees could be given positions.

The new store has been hailed as a major boost for employment in the town centre, but questions have been raised about how it will fit into Hammerson and Westfield's £1bn redevelopment of the town centre.

The Croydon Partnership, the joint venture from the two retail giants, was unaware of the deal between Minerva and Metro Outlet to take over the retail space.

Minerva has leased the whole of the building to Metro Outlet totalling over 500,000 sq foot of retail space, but will not say how long the least will last.

The landlord has been trying to fill the site since the historic department store Allders closed last September, after 150 years trading in North End to create revenue.

It is understood if Hammerson and Westfield take over the Allders site, having a business trading there could complicate any deal.

Gavin Barwell MP for Croydon Central, said it was positive that new jobs were being created but wanted to know more details about the length of the lease.

He said: "Provided the lease they are offering to this company is a short lease, then I think this is very good news as it is creating jobs for Croydon people.

"My concern is if they offer a long lease, that could impact on the long term regeneration plans and we don’t want that disturbed in any shape or form."

Matthew Sims, Chief Executive of Croydon BID, echoed Mr Barwell’s comments on the potential length of the lease.

He said: "This is a positive step for the town centre. To see the store opening up in the guise of The Croydon Village can only be positive news for shoppers.

"I will be looking for further clarity on how it will integrate with the redevelopment of the town centre." Businesses based in the arcade have reacted positively to the news of the building coming back into use.

Mahesh Gajjar, owner of Winborn & Gajjar jewellery and watch repair business, said: "We will be really pleased to have someone in there again.

"It is essential for us. It has been awful since Allders closed. People think our store has gone.

"The only customers we get are people walking through to get to the tram stop, loyal customers and people who are recommended us. It is not enough."

Kieran Martin, stand-in manager at Timpson shoe repair shop, said: "We do about half the trade we did when Allders was there. It will make so much difference having it open again. A lot more people will be coming through."