Final curtain falls on Summer Row

The £300 million Summer Row shopping dream in the Black Country was today all but dead - as developers revealed they were suing the Irish investors who backed out and caused the plans to collapse.

The showpiece complex in Wolverhampton due to be anchored by Debenhams and Marks & Spencer has been in crisis since a funding deal with a consortium of three Northern Irish businessmen collapsed in December 2008. Developer Multi has given itself until Tuesday before it admits defeat.

It revealed today it was pursuing legal action against the initial investors.

The consortium was made up of two major backers, Lagan Group and Bangor-based MAR Properties, along with housebuilding firm Windsor.

Lagan, involved in the manufacture and supply of construction materials, and MAR, which owns the Wolverhampton Airport site in Halfpenny Green, have since worked together on plans for a Sainsbury's store in Belfast.

Multi managing director Paul Sargent today said legal action was launched after the deal "fell away" during the recession in 2008.

"We started legal action straight away and that is still ongoing," he added.

Compulsory purchase orders on 200 businesses that will make way for the 600,000 sq ft development in Snow Hill run out in February next year.

It recently emerged businesses could be bought by Wolverhampton City Council and then rented back to traders. The council may take up a loan to meet the cost of buying the buildings and would act as landlord until a developer is found.

That would give the council complete control of the development area and enable it to act quickly if and when an investor is found, without the need to start the compulsory purchase process again.

Bosses hope the shopping complex, which would be bordered by Cleveland Street, Snow Hill and Temple Street, would rival Merry Hill and Birmingham's Bullring. Last month Multi revealed the centre would have to be scaled down 20 per cent in an attempt to secure an investor.

Lagan and MAR were today unavailable for comment.