Two cinema operators are bidding to open in Kidderminster as part of a £38 million redevelopment of the Worcester Street area.

They are said to be in talks with developers Wilson Bowden about taking space in the development. The project aims to transform the gateway into the town from Comberton Hill and the town’s railway station.

However, the names of the cinema operators interested in going into the town are being kept under wraps as negotiations continue.

The Worcester Street scheme includes plans for an eight-screen cinema, along with a 20-lane bowling alley and a hotel, shops, restaurants and apartments and is aimed at bringing a shabby part of the town back to life.

Traders are pinning their hopes on it bringing an upturn in trade but building work is not expected to start until later this year or early in 2009 if planning permissions are given.

Ground tests on the site still have to be completed but once these are done and permission granted the scheme is expected to get under way.

It is already known that five hotel chains have been looking to move into the Wyre Forest district, and the news that two cinema operators want to take space in Kidderminster is expected to boost hopes even further that the area and trade are preparing for an upturn.

Councillors have already said the scheme will be a “fabulous development” which will bring the area to life with family entertainment and new homes.

The scheme was set back last year when the preferred developers Wilson Bowden were acquired by Barratt Developments. Now Wilson Bowden has said it is still on board to deliver the scheme.

Will Robinson, development director for Wilson Bowden Developments, said: “Work is ongoing to progress with our development proposals, and we continue to work closely with Wyre Forest District Council. At present, we are currently in discussions with two operators for the cinema.”