Plans to build a £1m pub in Chester-le-Street, have been shelved.
JD Wetherspoon, a Watford firm, pulled out of plans to build the pub on the site of a derelict car showroom at the southern end of the town's Front Street, for commercial reasons.
The development would have created about 25 full and part-time jobs in a part of the town that civic leaders are keen to rejuvenate.
It's the second time this year the company has scrapped plans to expand into north County Durham.
In March, the firm admitted it could not afford to spend £300,000 converting the Trade Union Memorial Hall in Consett after it had submitted plans to Derwentside District Council.
Despite objections to the Chester-le-Street pub plans from some local residents, and police, civic leaders were pinning their hopes on a major redevelopment at one end of Front Street.
Chester-le-Street District Council leader Councillor Malcolm Pratt said: "It is disappointing that Wetherspoons have pulled out. However, this is an important gateway to Chester-le-Street and we are confident that it will be redeveloped in the future."
Residents and police objected to the plans, which were recommended for approval by council planners last month, because they feared another large pub in the town would lead to an increase in loutish behaviour, noise and violence.
Homeowners in nearby Union Court, many of whom are elderly, were particularly angry and submitted a 40-signature petition of objection to the council.
David Isaac, director of licensing at Wetherspoons, said: "The withdrawal was a commercial decision.
"Sometimes you are unable to agree a deal that is acceptable from a commercial point of view, and that is what happened with the person who owned the land. It is nothing unusual.
"We are still looking to expand into the north Durham area."
Wetherspoons is known for its friendly, old-fashioned pubs where food is available all day and drinkers go undisturbed by TVs, music or karaoke machines
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