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Stack has been accused of showing "flagrant disregard" for Durham after scrapping long-delayed plans to open in the city centre.
Mary Kelly Foy said the collapse of plans to bring Stack to the city centre comes as no surprise after years of delays, accusing the developer of leaving a prime site empty while making "false promises".
Stack confirmed last night it had scrapped its proposed venue in the former Marks & Spencer building on Silver Street, saying: “We recognise that there will be a huge amount of disappointment about these decisions.
“And these are not decisions we have taken lightly but we have had to look about where to focus our time, investment and resources.
“Rather than continuing to delay progress on these sites, we believe it is the best interests of both Durham and Whitley Bay to step aside and allow alternative providers to come forward.”
The announcement follows months of uncertainty over the scheme, with work repeatedly delayed despite assurances from the company that Durham remained part of its long-term expansion plans.
City of Durham MP Mary Kelly Foy said the decision was "what many of us suspected all along."
"These years of false promises have left a prime retail site in the city centre out of use, and often left in a disgraceful state, when we could have had another operator in the building," she said.
Stack will no longer open a site in Durham. (Image: SARAH CALDECOTT)
She added that the development had always been "the wrong scheme" for the historic city centre and said many residents, hospitality businesses and retailers had opposed the plans from the outset.
"Perhaps now that the building is back on the market, we can see another company come forward with a far more suitable proposal for Durham City," she said.
(Image: House of Commons/PA Wire)
The project was granted planning permission by Durham County Council in April 2023.
Plans would have transformed the vacant department store into a multi-level food, drink and entertainment venue featuring street food traders, bars, live music and a rooftop terrace.
However, progress stalled almost immediately.
The site remained largely untouched for years, prompting criticism from residents, businesses and Ms Kelly Foy, who repeatedly questioned why work had not begun.
Earlier this year, Ms Foy accused Stack of "tinkering around the edges" rather than delivering the scheme and later claimed the company appeared to be prioritising developments elsewhere in the UK while Durham continued to wait.
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Stack had maintained throughout 2025 and 2026 that it remained committed to both Durham and a second County Durham venue in Bishop Auckland, where progress has also been hampered by structural and party wall issues affecting neighbouring buildings.
In July, the company said both projects "remain important projects within our long-term expansion plans".
The Bishop Auckland site remains in the company's plans.