Long-delayed plans to open a Stack leisure venue in Durham city centre have been abandoned.
Stack bosses have pulled out of the proposed development at the former Marks & Spencer building on Silver Street, the Echo can reveal.
First approved in 2023 and touted to open that year, Stack has long insisted it remained committed to the site and blamed "unforeseen delays" and issues with its sister development in Bishop Auckland for the delay.
But last night Stack confirmed plans for the Durham venue had been scrapped, along with those for a development at Whitley Bay's Spanish City, also announced in 2023.
Neill Winch, chief executive of Stack Leisure, said: "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.
(Image: The Northern Echo)
"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.
“Stack was fully committed to opening at both Whitley Bay and Durham and remained committed to the projects for a considerable period of time.
“When these sites were originally added to our development pipeline, our ambition was to deliver three to four new venues per year but in reality two sites a year is a more realistic number.
“While that ambition remains unchanged, the reality of delivering large-scale regeneration and hospitality projects has meant that pace has not been achievable.
“We do not want to continue holding back regeneration and investment while projects move further and further down our timeline so have had to make this very difficult decision.”
The firm has blamed a combination of unforeseen development costs, the pace of planning and legal processes, infrastructure requirements and wider pressures affecting the hospitality and leisure sector for the decision.
The Silver Street scheme would have transformed the long-vacant city centre building, previously home to M&S, M&Co and Yorkshire Trading, into a multi-level venue featuring bars, street food traders and live entertainment spaces.
The ground floor was due to be home to eight food traders and a central seating ‘plaza’ with a stage to host live music and comedy.
Durham County Council were not told of Stack's plans to withdraw from the city ahead of an announcement. (Image: SARAH CALDECOTT)
Further food traders and two more bars were touted for the first floor, with the second floor designated for a games area.
A licence to sell alcohol between 10am and 12am Monday to Thursday, extended to 1am on Fridays and Saturdays was also approved.
In October 2023 Mr Winch said work on asbestos demolition and internal demolition would begin within "four to six weeks".
Nearly two years later in August 2025 the firm said its delivery had been delayed due to "unforeseen circumstances with an adjoining building at our Bishop Auckland site" which had impacted its "delivery pipeline".
In January this year Stack reaffirmed its commitment to the project after the city's MP Mary Foy branded it a "white elephant".
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The plans proved controversial from the outset, generating significant opposition from some residents and businesses, while supporters argued the development would breathe new life into a prominent vacant property.
Mr Winch said Stack remains committed to its Bishop Auckland plans, also announced in 2022.
The company said it would not rule out returning to Durham in future should a suitable opportunity arise.