A STRETCH of canalside in Burnley could be redeveloped after a company agreed to buy two mills from a former footwear manufacturer.

St Modwen Developments has reached a deal with Lambert Howarth to acquire the firm's premises at Healey Royd Mill and Finsley Gate Mill.

The Birmingham-based company propose to turn the 7.5acre site at the end of a stretch, known as the Straight Mile, into a mixed-use facility, featuring leisure, residential and employment developments.

St Modwen own Junction Seven Business Park, in Hyndburn, and have been involved in the redevelopment of Widnes town centre.

A spokesman for the firm said it was early days for the scheme but hoped it would be the first of many projects the company will be involved with in Burnley.

He said: "We see Burnley as town that is on the up and it offers some fantastic redevelopment opportunities.

"We are hoping this will be the first of several acquisitions in the Burnley area.

"It is a town which should be thriving."

"This is a fine opportunity to create something special on a really strategic site and enhance a historic canalside setting.

"We are looking forward to doing this in concert with Lambert Howarth and Burnley Borough Council to come forward with an imaginative masterplan."

In its hey day, former footwear giant Lambert Howarth used to employ hundreds of people across East Lancashire. But in 1997 the company moved its manufacturing operations oversees because of cost.

It will continue to operate its footwear warehouse and distribution business from the site for up to three years while alternative premises are sought.

When it relocates, St Modwen will take control and develop the buildings.

John Wilkinson, operations director for Lambert Howarth, said the company wanted to remain in the town.

He said: "We have been looking to move from this site for about five years to more modern premises.

"The important thing is we find somewhere in the Burnley area so we can retain our workforce."