JOBS at Chester-based Marks & Spencer Money are safe 'for the time being' after the business was sold for £762m to the HSBC bank.

But the long-term prospects are unclear for the 1,600 people working at Chester Business Park following this week's announcement. M&S will jointly manage the enterprise, which will continue to trade under the M&S brand, with profits split equally between the two high-street giants.

The move follows the appointment of Stuart Rose as the chief executive of Marks & Spencer at the end of May. Since then the management team has undertaken an extensive review of operations to identify areas of the business where performance can be improved.

M&S spokeswoman Sue Sadler said: 'HSBC need to understand the business more fully. My understanding at the moment is that they are guaranteeing security in terms of staff conditions of service to all Money employees. They are intending, at least for the time being, to keep all the Money employees.'

HSBC spokesman Richard Beck backed up this position, and said the most obvious cost benefit of the link-up was HSBC's ability to raise money more cheaply and the ability to offer customers a wider range of financial services, such as mortgages and pensions.

He added: 'There are 1,600 people employed in the Chester area. We employ 223,000 worldwide, so it's not a significant staff cost. We are trusting M&S to manage that. Over time we will look into it with them.'

Mr Beck said past mergers had revealed that sometimes the acquired business had superior expertise or technology and it made sense for them to take on more work. He said the Chester case was unclear at the moment.

The Marks & Spencer plan aims to see £2.3 billion returned to shareholders in the wake of this week's third rejected takeover offer from entrepreneur Philip Green.

Chief executive Mr Rose said the reforms would give M&S 'back to our customers'.

As well as selling its financial services arm, M&S will buy the Per Una Due clothing business from designer George Davis for £125m.

The High Street retailer is trying to convince investors the turnaround plan will boost the value of the group beyond what Mr Green offered.

M&S also plans to close stores as part of cost-cutting measures that aim to save £250m in the current financial year, rising to £320m by 2006/07.

First on the chopping block will be the group's Lifestyle concept store in Gateshead, while it also is halting the roll-out of Simply Food outlets.

There has already been speculation that one of Chester's two stores could go, especially in the light of the opening of an M&S outlet at Broughton Shopping Park.

Mr Rose said M&S will concentrate on its 11 million core customers - mainly women in the 35-55 age group.

Under the shake-up proposals, M&S has also had its property portfolio revalued - upping the value from £2.2 billion to £3.3 billion - which it hopes investors will consider as they mull over the Green bid.