BUDGENS is preparing to shut down its town centre store in two weeks claiming it is no longer cost effective to operate.

The closure of the shop, which has been in the High Street in Marlow for 11 years, follows soon after that of Stead & Simpson shoe shop and business leaders fear other stores face the same fate.

Ron Alexander, a spokesman for Budgens, said: "The store has always been handicapped by a lack of parking and has recently begun to look decidedly dated.

"It is with considerable sadness that we will be closing the store and we would like to thank all our customers and staff for their loyal support over the years."

He said staff have been offered jobs at nearby stores.

Stead & Simpson, in the High Street, closed down last month, citing spiralling charges as one of the reasons for the departure.

Business sources in the town have warned that Use Your Loaf bakery, also in the High Street, is set to close due to high rents although the company refuse to comment on the issue.

Michael Shanly Investments, which owns large parts of the town and sets many of the rents, defended the high charges.

David Mason, a director of the company, said: "Rents are increasing because there are quite a number of national retail operators that want a store in the centre of Marlow."

Businesses in the town have said Stead & Simpson and Budgens are among the first cards in the pack to fall and could signal the end of many of the town's retailers.

Richard Hunt, owner of Hunts Hardware in Spittal Street, said if the rents and rates continued to rise he would be forced out of the town within five years.

He added: "The bubble is about to burst. I do know other people in the town who are trying to sell-off their businesses. In some respects they are being forced out."

Colin Berks, president of the Marlow Chamber of Trade, said: "We are alarmed at the number of traders in the town who are encountering difficulties mainly in terms of the cost of running a business in Marlow.

"The trend is for the service shops to close and be replaced by luxury shops and restaurants. Marlow is changing from a service centre to an entertainment and luxury centre."

Maythers card shop is set to move into the old Stead & Simpson leaving three spaces in the High Street area Budgens, Costers and Maythers old store in Market Square.