TRADERS were bracing themselves for disruption this week as excavation work began at the Royal George.

Developer Philip Hughes said lorries would soon remove piles of rubble prior to pile-driving work scheduled for the first week in November.

"There will be a large amount of material being excavated from the site," he said.

"It's been very slow progress so far but things should speed up shortly."

A large crater has been dug behind the empty hotel, which is now partially covered by boards featuring pictures of the proposed development.

On Monday Mr Hughes confirmed that the condition of the grade II listed building was worse than expected. He said work had been delayed so that the Royal George could be strengthened.

"As we were exposing more of the building we found it was in a poorer state than we thought," he said. "The whole building is being continually monitored."

Mr Hughes' company, Gaskell Estates, is building recently-named Regent Street with offices, shops, apartments and two restaurants. It will link King Street and Princess Street and will create about 200 jobs once it is finished.

Pile-driving work that will prepare the ground for Knutsford's first underground car park is expected to start next month.

This week solicitors were still in talks to agree terms between the developer and the shops that want to move in.

Stuart Rushton estate agents has sold all 18 apartments for between £150,000 and £475,000.

But this week Mr Hughes, who is based in the town centre, did not know if the owners planned to move in when work finished in 2006.

"It's not really any of our business whether they are moving in or intend to rent the properties," he said.