A DEAL between a property firm and the council to redevelop the empty Arcade site in Walthamstow has collapsed.

In a joint statement released this morning, St Modwen Properties Plc and Waltham Forest Council said they had agreed to part company by mutual consent after failing to deliver on plans to build a mix of shops, leisure facilities and housing at the site.

Council leader Chris Robbins blamed the impact of the recession on retailers for the collapse, but said the redevelopment of the area of land, on the corner of the High Street and Hoe Street, remained a "high priority".

He said: "we will now examine alternative ways of bringing a first rate scheme to this site.

"St Modwen worked hard to attract the interest of several national retailers but issues relating to the scheme's viability resulted in the decision to end the agreement.

"The council is now approaching its Registered Social Landlord development partners to gauge their interest in helping deliver this scheme.

"This is the council's preferred option and is likely to be the quickest route towards delivering a scheme on this site."

More to follow.

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