The multi-million pound transformation of parts of Wolverhampton city centre left derelict in the wake of failed plans for the Summer Row shopping complex will go ahead after being approved by council chiefs.

Around £13.4 million is to be spent on the Southside Intervention Plan which will see run-down shops demolished or spruced up, and traders given grants to help boost business.

Last night the ruling Labour cabinet heard from Nick Edwards, assistant director for prosperity, on the issue.

He said the plan “highlighted the need for a comprehensive, strategic, co-ordinated and integrated approach to the delivery of regeneration activities across the city centre which has not previously existed”.

The cabinet was told the council is trying to move on from the disappointment of the £300m Summer Row shopping centre plan, which was scrapped in January.

Councillor in charge of regeneration, Peter Bilson, said: “All of us were hugely disappointed that Summer Row was not able to proceed. It’s now time to draw a line under that.”

The council is inviting 80 potential investors to a meeting next Thursday.

Southside incorporates Summer Row, Cleveland Street, Worcester Street, Temple Street and Snow Hill. The council has warned it may be three years before any work begins.

The scrapping of the Summer Row project after seven years has left the area in limbo. Opposition Conservative leader Councillor Neville Patten said: “I hope that this works because we need to get our city moving.

“But I do think it should have waited until after the developers’ forum to see if there are private investors willing to develop in Wolverhampton because we should not be offering a hope if it cannot be fulfilled.”

While traders have welcomed any intervention, many are sceptical.

Peter Lofty, who has run DJ Heaven on Cleveland Street for 10 years, said: “I applaud the fact the council is trying to to do something but I want to see more details.”