A fast-expanding chain is set to open a new cafe-bar in the New Year on Tavistock high street.

Speculation has been rife that the former M&Co fashion store which closed last year would be occupied by a fast food outlet or other restaurant and cafe.

The guesswork began when workers took over the premises next to Superdrug in November to extend the front outwards and convert the very wide building downstairs. Conversion work is continuing and is also expected to provide a roof-top outdoor area.

The town has seen several cafes open and close over the past year for various reasons, but the cafe culture remains strong in town as new businesses thrive.

The Loungers company, which started in Bristol, now has its eyes on Tavistock and is considering opening a Lounge, one of its two brands, in the Duke Street premises.

The company, has outlets in Exeter, Totnes and Plymouth among its nationwide sites – having seen a gap in the market for a larger cafe-bar that opens all day.

A spokesperson for Loungers said: “We are in advanced negotiations on a site in Tavistock – it’s a great area and we are hopeful to join the local community by opening a Lounge and creating between 30-40 new jobs.

“Nothing is totally confirmed yet, however, for every Lounge we open, it’s important to us that we give back to the community.

“We partner with local charities to raise funds, our spaces are used for meetings of local groups and businesses and we encourage customers to use us as a community hub.

“We hope to have more information on the site in Tavistock soon.”