WALTHAM Forest Pool & Track will be partially demolished under plans to regenerate the empty Arcade site in Walthamstow.

The pool at the Chingford Road will be replaced by a new facility at the Arcade site, on the corner of Hoe Street and High Street.

It is believed the track may remain on the site, which will become part of a larger development.

Cllr Terry Wheeler, the council's cabinet member for enterprise, said: "The pool is coming towards the end of its life, it makes no sound economic sense to try and modernise it."

He added that it is too early to say exactly what will happen to the pool and track site but surrounding land, including land at George Monoux college, may also be developed.

The news comes as Arcade site developer St Modwen PLC announced a £50m loss for the last financial year, compared to a profit of £93.7m just two years ago.

During the same period the developer's share price has plummeted by 14 per cent.

But despite the figures St Modwen has assured leading Waltham Forest councillors that it can still deliver on the long-awaited project.

Cllr Terry Wheeler, the council's cabinet member for enterprise, said: "St Modwen are a sound financial organisation.There is no danger."

The council's preference for the scheme has altered in the midst of the recession.

The development will no longer be "retail-led", although it will still have a number of shops.There will be 65 housing units, including family homes, a multiplex cinema and a new pool.

It is envisaged there will still be an "iconic" tower on the site, although it may be reduced from 18 storeys, as initially suggested.

At a cabinet meeting on March 24, leading councillors will agree a rough outline of what the development should contain.

St Modwen will then draw up a planning application to be submitted later this year. Once the application is submitted ownership will transfer to St Modwen.

Deputy leader Cllr John Macklin said the Arcade site should be used for something different that would bring people into the borough, such as a diverse food market.

He said: "There is no point in trying to compete with the new Stratford City complex or Ilford, we should be offering something unique.

The council is currently looking at ways of using the site temporarily, and has looked at the possibility of using it for a mini ice-rink.