BAR wars could break out in Burnley with news of plans to convert a major town centre eyesore into a multi-million pounds hotel and nightspot.

Nightclub owner Bedelia Foulds aims to transform the near-derelict Proctor's foundry mill into a major leisure centre.

It could challenge the supremacy of the town's top nightspot, Panama Joe's - just across the road in Hammerton Street - which we can reveal has just been sold to a leisure chain for a reputed £1.5 million.

Foulridge-based Mrs Foulds already owns the town's Zanzibar nightspot in Keirby Walk and Blueberrys club in Nelson.

But her plans to turn the three-storey mill into a 55-room hotel dwarf her previous successful ventures.

She has already submitted a planning application for change of use to Burnley council, which has worked for years to find a developer for the century-old three-storey building.

Meanwhile, it was announced that Panama Joe's has bought out by Preston-based Northern Leisure for in an unconfirmed £1.5m deal. The club, created in a disused Co-op building in the 1980s was recently extended to create the first-floor Meancat Daddies centre and attracts thousands of partygoers each night.

The club was headed by Burnley sheetmetal works boss, Pete Reddy, Alec Thorpe and Michael Cookson.

Mrs Foulds' plans for a basement nightspot in Proctor's Mill had a setback when licensing magistrates yesterday refused to grant a licence.

But other licences were given the go-ahead and she is confident the whole scheme will go ahead.

The application to Burnley council from BF Leisure shows the ground floor of the large premises as a banqueting suite, restaurant and public house.

A conference suite and residential rooms are planned for the first, second and third floors.

New Panama owners, Northern Leisure, also owns the now closed Club Euro, Blackburn, the Roxy, Bury, and popular Preston club Tokyo Joe's.

No-one was available from Northern Leisure to comment on the purchase.

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