THE £40million Oval shopping complex planned for Burnley town centre has been scrapped.

Bosses had been working with retail giants, including Primark and Next, to create the centre in Curzon Street.

But yesterday Manchester-based Henry Boot Developments said it had pulled out of the project because of ‘a lack of commitment’ by retailers.

The scheme, planned in conjunction with Burnley Council, had been in development for more than eight years.

Community leaders have said it was a major blow to the town.

Burnley Council chief executive Steve Rumbelow said: “This is very disappointing but it is a result of circumstances outside our control.

“It just reflects what is happening in the economy across the whole country. Retailers have made a commercial decision.

“At the same time, we should be clear that a range of companies are still showing their commitment to expand their business in Burnley. This reflects their continued faith in this town as a vibrant shopping centre.

“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.”

The Oval shopping centre was announced in 2004 but hit delays as the country plunged into a recession.

Developers planned to transform the former Pioneer car park into 17 new shops, cafes and a 400 space car park.

Burnley Labour Group leader, Coun Julie Cooper, said: “I am really disappointed with this news. When I joined the council in 2005 this project was new and exciting and promising great things for the town.

“I think in recent times the council has been burying its head in the sand and not seeing the extra help the town centre has needed.

“Shoppers want to visit areas with lots of shops not a town that is losing shops every week.”

Burnley MP Gordon Birtwistle said: “I am really angry that Henry Boot are no longer going ahead with this project.

"If they had told us two or three years ago we could have found another developer to step in and take over.

“I feel they have led the council up the garden path for years before finally pulling out and it is very disappointing for everyone concerned.

“I was on the original panel that selected Henry Boot. I feel they have let us down.”

Last year the planned development sparked pledges from bosses at rival Charter Walk shopping centre to announce a major redevelopment last year.

The decision to scrap the scheme is thought to have been made because of the number of existing opportunities for retailers in the town centre.

Coun Charlie Briggs, leader of Burnley Council, said the announcement was a ‘sign of the times’.

He said: “Britain’s retailers and high streets are facing the toughest times in living memory, and unfortunately Burnley isn’t immune to the effects of the economic downturn.

“Whatever happens in terms of particular developments, Burnley Council will keep on working hard to create opportunities.

Mr Rumbelow said the council would continue to work with Addington Capital, the new owner of Charter Walk shopping centre.

He said: “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.”

Matthew Allen, from Addington, said: “We have the opportunity to build on the success of Charter Walk shopping centre.

"We will be working with the council to develop it further in the coming months.”