Ask any visitor to list Brighton's most famous landmarks and the chances are Hanningtons will be on the list.

The quirky, sprawling and slightly-dated department store is almost as old and as much of an institution as the Royal Pavilion.

But while many local people will be saddened when the Hanningtons name goes for good, local property experts believe it will pave the way for a flood of new retailers.

Nick Bradbeer, a director at Stiles Harold Williams estate agents in Brighton, said: "I suspect Hanningtons will be divided into small units and then leased off.

"The town is booming in a large way at the moment, even more than in the Eighties, and there are a lot of retailers who would like to come into the town who are unable to find a suitable space."

A number of redevelopments are already going ahead in the North Street area, including a new Italian restaurant on the corner of New Road and North Street, and a casino and restaurant in the old ABC cinema in East Street.

John Ely, of Countrywide Commercial estate agents, also in Brighton, said: "We have a very interesting scenario developing.

"From not having many opportunities for new development in Brighton we now have several, with Hanningtons the latest.

"What I would hope to see is a sub-division of the department store into large individual units."

Hanningtons was a small linen and drapery store when it was opened by Smith Hannington in 1808.

But its prime site, almost opposite the Royal Pavilion, ensured it was a success. Gradually it extended along North Street and Queen Victoria, who occasionally visited Brighton, gave it a warrant.

Smith Hannington died in 1855 but his family retained a hold on the store, which continued to expand, acquiring its distinctive corner site at East Street in the Twenties.

Hanningtons suffered some bomb damage during the Second World War but continued to expand afterwards.

Its frontage on North Street presented a rather mottled appearance, with some other businesses in between, such as a Lyons tea shop.

In 1976, Hanningtons acquired these premises to give the store a continuous frontage.

Thirteen years later, a bridge was built over the foot of Market Street so customers could get into the East Street section of the store without having to go outside.

In the Sixties the company was responsible in part for redeveloping Brighton Square in The Lanes and received a Civic Trust award.

For many years Hanningtons was the largest department store in town but eventually lost the title to the Co-op in London Road.

The last Hannington, Dorothy, died more than 30 years ago but the store continued to run as a family business thanks to loyal and largely female customers.

Brighton author Peggy Eaton used Hanningtons as the setting for part of her novel, Silver Joey, which came out last year.

She said: "Although I was born in Brighton, I always found it a bit up-market and didn't go there often. But what a pity it will be if it goes. It was the last of the big privately-owned stores."

Hanningtons has gradually wilted against the onslaught of the multiples in nearby Western Road and Churchill Square.

Rather than sell, the store bosses let concessions in some parts of the store and whole sections are now run by businesses such as Monsoon and The Pier.

Rumours that the store would close or be sold continued to circulate but the store staggered on.

Now it is going the same way as nearby Vokins, which shut in 1997.