DEVELOPERS have admitted that plans to open a £110m shopping mall in a North-East town have been put on hold amid the economic gloom.

The Oval concourse, in the centre of Darlington, was planned to include a multiscreen cinema, 30 shops, bars and restaurants and a new Debenhams department store.

Last year, developers Discovery Properties announced that the opening had been delayed by a year to 2011 because of the recession.

But the company’s chief executive admitted last night that there was now no scheduled opening date.

“I think it is still likely to happen, but not in the immediate future,” said Hugo Hawkins.

“Frankly, at the present moment we are coping with the credit crunch. We have structural finance issues, but I believe it will go forward.

“We are putting in place a number of things at the moment and working with a number of bodies, including the local council, to make it happen.”

The scheme, in Commercial Street, had been hailed as central to the future of the retail economy in Darlington and the wider Tees Valley.

Darlington Borough Council gave the project planning permission in 2007, and high street names, including Vue Cinemas and Debenhams, were lined up to take part.

Asked if the firms were still contracted to take part in the scheme, Mr Hawkins replied: “The answer is yes and no.

“We have a contract with Debenhams in particular.

However, that contract specifies a different time-scale.

“The whole situation and time-scale has changed everything.

“They are still interested, but there is a complexity to the situation.

“There is still very strong interest from tenants. There is good demand, so that is positive.

“I think there is a reasonable chance of this happening, but I do think it will take some considerable time to resolve things before we can have a firm timetable.”

Mark De Quervain, marketing director for Vue Cinemas, said: “ I am sure we are still interested, but the key question about when and what is happening is changing all the time.

“We are still keen, but with the state the development is in at the moment, I don’t know to what extent.”

A spokeswoman for Darlington Borough Council said: “The council is still in discussions with Discovery Properties and we are trying to move the development forward.”

Ross Smith, head of policy at the North-East Chamber of Commerce, said: “We might have to wait a little while longer, but the potential for this to be very exciting for Darlington is still there.

“We just hope that the economic conditions are right sooner rather than later so progress can be made.”

The Northern Echo contacted Debenhams yesterday, but no one from the company was prepared to comment.