A Henry Boot-backed £40m Burnley retail development has been scrapped.
Burnley Council said it had been informed that the planned Curzon Street development will not go ahead as discussions between Henry Boot and retailers have failed to lead to enough rentals for the proposed shopping centre.
The council said a reason for the lack of take-up was the existing available units in the town centre.
Burnley Council chief executive Steve Rumbelow said: “This is very disappointing but it’s a result of circumstances outside our control. It just reflects what is happening in the economy across the whole country.
“We’ve been working with Henry Boot for some years on these plans. We’ve both done all we can to make the scheme work, but it has not been possible to finalise it. We would like to thank Henry Boot for all the work they have done and the investment they have made in time and money in trying to bring this about.”
However the council also confirmed it was working with the owners of the Charter Walk shopping centre, Addington Capital, to improve the retail offer in Burnley.
Mr Rumbelow added: “Addington Capital has ambitious plans for Charter Walk with the first phase of works to go on site in the summer. We are working with them to strengthen the retail offer still further.”