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Plans for a Stack venue and rooftop terrace at Whitley Bay's iconic Spanish City have been canned.
Stack has scrapped its proposed leisure hubs in Whitley Bay and Durham.
The company had planned to transform the Empress Ballroom, a historic venue that has been vacant since 2018, into a food, drink and entertainment destination.
Neill Winch, CEO 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 at where to focus our time, investment and resources.
"Rather than continuing to delay progress on these sites, we believe it is in the best interests of both Durham and Whitley Bay to step aside and allow alternative providers to come forward."
Mr Winch blamed unforeseen development costs, slow planning and legal processes, infrastructure demands and wider pressure on hospitality and leisure.
He said: "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."
The former Carlton Club Bingo Hall at the Spanish City Plaza, Whitley Bay. (Image: LDRS)
The Whitley Bay project faced mounting delays and growing concern among councillors and residents.
In June, eight councillors from across the political divide signed a letter demanding an update on the Empress Ballroom scheme, citing public concern and Stack’s lack of communication.
The letter said: "The lack of updates has caused great public concern and heightened fears that plans for Stack Whitley Bay and its promised jobs have been scrapped.
"It has been almost three years since the final plans were approved by North Tyneside Council."
In July 2025, Stack said it was "very much committed" to restoring the ballroom, blaming delays on pre-commencement planning conditions linked to the building’s historic status.
Planning permission for a rooftop terrace was granted in September 2023, despite objections from nearby residents and Marine Park First School.
Mr Winch said the company could not keep delaying other regeneration projects by holding on to sites further down its pipeline.
He said: "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."
Stack Leisure is pressing ahead with venues planned for Wigan, Bishop Auckland, Northampton, Manchester, Leeds and Sheffield.
Mr Winch said: "This decision is not a reflection of the performance of the business, the strength of the Stack concept, or the viability of the location.
"It is simply a decision about prioritisation and ensuring our resources are focused on projects that can be delivered most effectively."
He did not rule out returning to Whitley Bay if circumstances change.
He said: "We would never rule out returning to a location in the future if the right opportunity arose.
"However, Whitley Bay and Durham are not currently within our active development pipeline and our focus remains on delivering the projects already underway."
Read more:
- Stack scraps plans for Durham site and gives up building after years of delays
- Durham Council bosses left in dark over Stack scrapping Durham development
- Stack accused of 'flagrant disregard' for Durham after scrapping city centre venue
The proposed Durham venue would have transformed the former Marks & Spencer building on Silver Street into a multi-level site with bars, street food traders and live entertainment spaces.
Although the Durham scheme was approved in 2023, work did not begin until January 2025 and Stack later blamed unforeseen circumstances at its Bishop Auckland site for further delays.
Durham County Council was not told about Stack's decision to withdraw from the city before the company announced it.