A BID to encourage Tesco to re-site their proposed Accrington store within the Arndale Centre has failed.

Building work has started on the new 87,000 square feet store at the originally-proposed Eagle Street site.

Tesco has now confirmed it was ‘completely committed’ to the location, leaving plans for a £32 million Arndale expansion with another supermarket in tatters.

The news has led both the council’s leader and opposition leader to call on Arndale bosses to secure a new plan aimed at rejuvenating the town centre.

The shopping centre’s management are expected to sit down with Hyndburn Borough Council planning officers within weeks for a meeting to discuss the Arndale’s future.

Arndale Centre bosses said the news was not a set back as they were currently working with other potential occupiers.

The proposed Arndale extension involving a large supermarket and creating 450 jobs was made up of two potential design schemes.

Options included a 95,000 square foot store to be offered to Tesco as a ‘more central’ alternative to Eagle Street or a 70,000 square feet store aimed at attracting Morrisons.

A Tesco spokesman said: “We have the planning permission at Eagle Street and are starting to build on the site. We are committed completely to the plans for the Eagle Street store.”

The £32million bid to site a supermarket at Eagle Street was approved in June 2008.

UK Investment Director Darren Hutchinson, acting for PR Arndale Ltd, said: “We are speaking with other occupiers and will be meeting with the council soon to run through options. We are going to continue with our plans to invest in and revitalise Accrington town centre.”

Hyndburn Labour group leader Graham Jones said: “It is up to the Arndale centre really and I am sure it is a difficult decision for them to decide on what they need to do next.

"It is time now for the council to sit down with the centre’s management and come up with a plan of action. It’s time to forget about Tesco now and to find a new plan.”

Conservative Council leader Peter Britcliffe said: “I never expected Tesco to take up this plan as I think the Arndale’s bid was very late in the day. It would be good to see the Arndale’s expansion plans attract other big names to the town."