MARGO Grimshaw has revealed she's lost £3.25million in her dream to bring town-centre living to Blackburn but said: "This doesn't wipe me out".

Yesterday a deal was finally struck to end the lengthy court battle and hand control of the part-built apartments, in Blackburn town centre, to administrators.

Margo said: "I have got to pick myself up and carry on.

"I shall still be able to eat, if not quite so well. This doesn’t wipe Margo Grimshaw out.”

The deal means new buyers can now take over and finally complete the scheme, which has been frozen for the past two years.

The Lancashire Telegraph understands one developer is in pole position to purchase it from administrators Pricewaterhouse Coopers, and the option of changing the use of the buildings, possibly to a hotel, is being considered.

The terms of yesterday’s deal between Ms Grimshaw and the administration team, finally reached behind closed doors at Manchester Civil Justice Centre, are confidential.

But speaking afterwards, Ms Grimshaw, who invested land from her pub empire worth around £1.5million into the development at the top of King Street, was defiant and said she hoped it would now be completed.

She blamed the ‘global economic downturn’ for its demise and admitted she would have to be ‘very careful in the future’.

She said: “The cost financially to me has been in the region of £3.25million, no small sum, but I am hoping the end result to my home town will be worth it.”

Earlier this week, the Lancashire Telegraph columnist had admitted she would have lost the 'family silver' whatever the outcome of the court case.

But yesterday she insisted her finances would survive the blow, pointing to assets including the BBC building in Darwen Street, and said she would not need to sell her Toad Hall residence in Preston New Road, Blackburn.

One of the buildings in the town centre development, an 11-flat tower with top-floor penthouse suites at the top of Mincing Lane, is complete.

The next two buildings containing 16 flats are part-built in Market Street Lane/ Construction of the remaining 52 apartments in the final phase, in Market Street Lane, has only reached the foundations stage.

The scheme was designed to bring 'city living' to Blackburn.

But, amid the start of the credit crunch two years ago, the project ran out of money before it was completed.

Ms Grimshaw added: “It was a dream of mine which I still have to regenerate Blackburn town centre, and I hope it goes ahead.”

Her barrister, David Hoffman, said there had been a ‘long period of negotiation’.

He said: “We have resolved this litigation so that the development is now in a position to be progressed.

“We understand the administrators are in active discussions with possible purchasers.

“We do not know the details and are happy this has been brought to a commercial conclusion.”

After the case, Colin Rigby, Blackburn with Darwen council’s executive member for resources, said he believed the flats project was ill conceived.

He said: “Margo has always had a go in business, and has made herself a lot of money over the years.

"You can’t fault her for that, I just think she was badly advised in this situation.

“I didn’t think it was a viable proposition in that area with two pubs.

"I have to ask myself whether I would buy one, and the answer is no.”