Contractors are preparing to start work in the building, ahead of an archaeological dig which is expected to shed light on the town’s medieval past.

As revealed in the Beverley Guardian, the building is due to be transformed into an upmarket department store for Brown of York and Helmsley, with an opening date pencilled in for Easter 2009.

The roof and a wall at the rear of the premises has now been removed, to allow machinery onto the site.

Beverley businessman David Fletcher, who owns the Playhouse, said specialist contractors Kellers of London will start work after this week’s Easter break on piling it with liquid concrete, before a basement is excavated for the new department store.

The piling work is planned to take about 10 weeks and archaeologists will then move onto the site to start their excavations.

Archaeology consultant Ed Dennison said they are hoping to move onto the site at the end of May, and a team of about 10 archaeologists is expected to work on it for three months.

The site in Saturday Market is at the heart of medieval Beverley and Mr Dennison said it is a unique opportunity to explore such a major part of the historic core of the town.

Some trial excavations have already been carried out and he said it is expected to find medieval buildings associated with the early market place, with the foundations for stalls and other structures associated with the corn exchange and fish market which stood on the site before the present building was erected.

“We are quite excited about it all because although there has been some archaeological work in the centre of the town, it has usually been small scale and piecemeal. This is the first time there has been any large excavation right in the heart of the medieval town,” he said.

Mr Fletcher plans to restore the Playhouse - which was built in the 19th century as a corn exchange - to its former glory.

“It will be put back into A1 condition, it will be beautiful,” he said.

The Playhouse, formerly the oldest working cinema in the UK, has stood empty since the final curtain fell on its films in 2002. It had been a cinema since 1911.

Its sale by previous owners East Riding Council sparked huge opposition and a bitterly fought campaign to save it for arts and community use.

The new Browns store will be a small department store selling women’s fashions, lingerie, cosmetics, shoes, handbags and accessories, with a cafe and restaurant.