Wolverhampton’s new shopping centre Summer Row is now back on track despite fears it could be stalled by the credit crunch, developers said today.

Multi Development UK has underlined its confidence in the £300 million project, saying it has secured the funding it needs to start work next spring and that retailers will open new stores. Fears have been raised for a number of major regeneration schemes in the city as the property market is hit by a lack of investment due to the economic slump.

Wolverhampton’s Goodyear redevelopment faces delay because of the impact of the housing crisis. Site owners St Modwen plans to build 600 homes on the site but says no housebuilding firms are currently taking on new projects.

And the slump on the high street has seen demand for commercial property plunge to its lowest level in a decade. The retail sector has been hardest hit in the wake of a string of store chains closing branches or going into administration in the past year.

But Belfast-based Multi has scotched fears that big retail groups might shy away from opening new stores at Summer Row.

Both Debenhams and fashion chain H&M have signed on the dotted line to take major store space within the shopping centre. The 105,000 sq ft Debenhams will be the development’s flagship store.

Multi marketing manager Adele Thompson said: “Multi and the council are confident that the scheme is on track to proceed in the early part of 2009 and this is supported by the funding being in place and level of retailer interest.”

The opening of the centre has been put back, however, from 2010 to spring 2011. The delay was caused by a legal challenge to the city council-backed scheme from London & Cambridge Properties (LCP), owners of the nearby Wulfrun Shopping Centre.