YORK'S last traditional cinema - the Odeon - could close, the Evening Press can reveal today.

The cinema's owners have confirmed that the Blossom Street site is currently being assessed for its "economic viability".

But the Evening Press understands that staff at the historic picture house, which was built in the 1930s, were told at a meeting last week that it may have to be put on the market as "all possibilities" had been exhausted.

A source, who wished to remain anonymous, said "redundancies were mentioned" at the briefing, along with the possibility of relocating some of the cinema's 20 staff to other Odeon sites across the region.

The Evening Press revealed last month that Odeon bosses had told City of York Council planning officers that they could be forced to close if plans to alter the high-level signs on the Grade II listed building were refused.

But councillors dismissed the threat as "ridiculous" and rejected the application because the unique signs were "an architectural feature and integral part of the building".

The changes were planned as part of renovation work to the outside of the building, which also included repainting the doors and windows.

Council leader Steve Galloway said he would be "astonished" if a sign outside the building was a factor in its closure.

"It would be with great disappointment if we lost the Odeon Cinema," he said. "It's part of the tradition of York and has been enjoyed by generations.

"The building is a significant feature on one of the major routes into the city. I would appeal to the owners to think again about the issue."

A spokeswoman for Odeon Cinemas said: "Odeon Cinema can confirm that its cinema on Blossom Street, York is being assessed for its economic viability.

"Management will continue to keep staff informed of any developments, should they occur."

A leading York developer, who asked not to be named, said the site was "hot property" and could fetch more than £2 million.

"You could easily put some offices on the ground floor and have a couple of luxurious penthouse flats on the top floor," he said.

"Underground parking is also an option. There will be a lot of interest."

But York cinema enthusiast Maurice Brentley, from Acomb, said it would be "tragic" if the cinema closed. "The Odeon retains a traditional feel of the old-style cinemas and it would be very sad to see it go," he said.

"The building has great character and a lot of people get a lot of enjoyment from it."

Updated: 10:33 Thursday, November 27, 2003