Plans to build a £40m shopping centre in Burnley have been scrapped.
Burnley council claimed developer Henry Boot pulled out of the Curzon Street development "because not enough retailers were committed to the site".
The leader of Burnley Council, Charlie Briggs, said news that the developer was withdrawing out was a "sign of the times".
Henry Boot, which has been working on the plans for six years, was unavailable for comment.
Mr Briggs said: "Burnley isn't immune to the effects of the economic downturn."
Chief executive of Burnley Council Steve Rumbelow said he was "very disappointed".
"We've both done all we can to make the scheme work, but it has not been possible to finalise it," he said.