A MULTI-MILLION pound development has been dealt a blow after two major firms walked away from the project.

But bosses at Hurstwood have issued a reassurance about the scheme in Newhallhey, Rawtenstall, although they’ve admitted that they cannot guarantee the future of the initiative.

The company has been rocked with the news that Homebase and Argos, two of the flagship tennants of the half-built scheme have pulled out.

Stephen Ashworth, Hurstwood chairman, said: “We cannot guarantee anything but we have worked for the last eight years trying to deliver the scheme and we remain as determined as ever to complete the job.

“It is something we started and something we want to see to a finish not only for us but for Rossendale.”

Homebase has taken a commercial decision to withdraw from the deal due to the current state of the economy.

Hurstwood, however, claim there has also been a lack of support from Rossendale Council.

Mr Ashworth said: “We feel it should never have come to this.

“Had we been given the support of Rossendale Council in the years and months leading up to this news the store could have been already open and trading in the Spring 2008.”

Council members have streniously denied these claims.

Coun Alyson Barnes said: “We are very very sad that the companies have decided to pull out of the plans and we are concerned for the future of the project.”

Mr Ashworth added: “The first step we need to take no is to put a new strategy in place to either re-sign the existing tenants or attract new ones.”

Last month it was announced that the major development of the Weaver’s Triangle in Burnley, another Hurstwood project, has been shelved for two years.