DEBENHAMS rejected plans for a new store in Burnley because bosses feared it would damage takings at its store in Blackburn.
Developers Henry Boot Ltd and Burnley Council had hoped to lure the high street chain into becoming the anchor store for the sprawling Oval development near Burnley centre.
But despite months of talks, Debenhams, which also has a branch in Church Street, Blackburn, withdrew from discussions.
Coun Margaret Lishman, deputy leader at Burnley Council, accused store operators of snubbing the town to safeguard its business interests in Blackburn.
And the bosses agreed that concern over trade in Blackburn was one of the issues it considered.
Coun Lishman told colleagues: "Burnley Council cannot be blamed for the downturn in the retail market, no more than when Debenhams, after asking how many years of free rent they could have from us, decided they were not coming anyway.
"I hope that the residents of Burnley consider this the next time they go to Debenhams in Blackburn, if indeed they do shop there."
A Debenhams spokesman said: "The impact on our Blackburn store was an issue when we withdrew from negotiations.
"We were also concerned that the proposed new development was relatively small and didn't link in particularly well with the rest of the shopping centre."
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