The new owner of holiday firm Butlins today insisted it would be business as usual after it was sold for £700 million.

Bourne Leisure has paid an estimated £700 million for Butlins, Warners and Oasis after the companies were put up for sale by Rank Leisure.

The For Sale sign hanging over Butlins prompted fears in Bognor over the future of the seafront complex, which is worth millions of pounds to the local economy and provides about 1,500 jobs.

A spokesman for Bourne, owned by millionaire racehorse owner Peter Harris, said: "Our whole ethos is to build and grow as opposed to anything of a negative nature.

"We want to deliver the type of holidays which people want if they decide to stay at home in Britain."

Bourne is currently best known for running caravan and chalet holiday centres throughout the country under the trade name British Holidays.

One of its sites is the Church Farm caravan park at Pagham, near Bognor.

The Butlins name and the famous Redcoats will remain, along with many other features of the holiday company, created in the Fifties by the late Sir Billy Butlin.

Bourne's spokesman said: "There are no suggestions of any changes to the brand and we plan to keep on improving the business."

Today's announcement ends months of speculation about the future of the Bognor centre.

The centre was put up for sale despite £40 million of investment during the last two years, part of a drive to improve its family image.

Rank modernised chalets and built a huge indoor pavilion housing entertainments, restaurants and shops which has been dubbed "Baby Dome."

It also slapped a ban on bookings by large single-sex party groups.

Bognor town councillor Paul Wells said Bourne would be made welcome in the town and he hoped the new owners would want to meet councillors to discuss their plans.

He said: "I am obviously encouraged by what Bourne has said because Butlins is very important to the town and the local economy."