The scheme has not attracted enough tenants to make the extension to the town’s existing shopping center viable.
Burnley Council chief executive Steve Rumbelow said: “This is very disappointing but it’s a result of circumstances outside our control. It just reflects what is happening in the economy across the whole country.
“Retailers have made a commercial decision. At the same time, we should be clear that a range of companies are still showing their commitment to expand their business in Burnley. This reflects their continued faith in this town as a vibrant shopping centre.
“We’ve been working with Henry Boot for some years on these plans. We’ve both done all we can to make the scheme work, but it has not been possible to finalise it.
“We would like to thank Henry Boot for all the work they have done and the investment they have made in time and money in trying to bring this about.
