DEBENHAMS withdrew from Burnley's £70million new shop-ping centre over fears it would have taken trade away from its Blackburn store, it has been claimed.

The store has been in negotiations for months with Henry Boot Developments, the company behind the Oval Centre planned for Curzon Road, about becoming its main "anchor" store.

But Henry Boot has confirmed that Debenhams has decided not to continue negotiations.

The news comes only months after Burnley Council gave the go-ahead to the 250,000sq ft development on the former Pioneer Co-op site, which is set to include bars and restaurants as well as shops, and a 500 space multi-storey car park.

The scheme is expected to generate around 400 new jobs. Burnley Council leader Gordon Birtwistle said that far from being a worry, the news was very positive for Burnley.

He explained said: "I understand the reason Debenhams has pulled out is because Burnley is becoming very popular and they're frightened that the Oval would affect its Blackburn investment.

"Five years ago we could have said that they had pulled out because Burnley didn't offer enough, but now the opposite is true.

"There's a buzz in Burnley and people can see it's got a great future."

Henry Boot regional manager Simon Dew said talks were ongoing to try and attract another big name.

Other high street names rumoured to be interested include Gap, Next, and H&M.

He added: "Negotiations are continuing with a number of leading companies to reach agreement with a tenant for the main "anchor" store, after a recent decision by the leading contender to take the space not to proceed with negotiations at this time."

Council chief executive Steve Rumbelow said: "While the decision is disappointing news, the Oval remains on schedule.

"We're still moving forward and we're working closely with Henry Boot to ensure that we sign up a high profile high street name as the main store."

Debenhams had no one available for comment.