Frozen food supermarket chain Iceland has confirmed it has bought the former Borehamwood branch of Woolworths.

The retailer announced it has taken over 51 of the 815 former Woolworth stores including the one in Shenley Road, following the closure of the last shop, last week. It is estimated around 2,500 jobs will be created by the move.

Iceland previously had a store in Borehamwood Shopping Park but it closed in 2005.

Edwin Nelken, chairman of Hertsmere’s chamber of trade, said: “We are pleased to see Iceland has accepted that Borehamwood is an up-an-coming town. They are probably sorry they closed their original store and there is a bigger potential for lower food stores now.

“We wish them every success and are pleased to see the old Woolworths store is being put to good use and that parade will be reinvigorated again.”

Administrators were called in last month by Woolworths, which had suffering mounting debts of around £385 million. The Borehamwood branch of Woolworths, which employed 20 staff, closed on December 27, in the first round of closures to hit the chain.

Last August, Iceland failed in its bid to buy all 815 Woolworths stores after its offer was rejected as being too low.

A spokesman for the supermarket said: “In response to widespread media speculation, I can confirm that following the successful acquisition of 51 Woolworth stores, Iceland will be creating in the region of 2,500 jobs across the country in the coming year. This is in addition to our existing new store opening programme.

“We are confident we can help to support the local community in these towns who have lost a major high street retailer in Woolworth’s. We look forward to developing our business in 2009 by continuing to offer our customers fantastic value everyday across our range of frozen, grocery and chilled products.”

Iceland said it is now working on a refurbishment and opening programme, and will announce more details later in the year.