A PUBLIC inquiry into the fate of an out-of-town shopping centre which traders in Accrington have claimed would be the "knell" for the town has been cancelled.

Peel Holdings, which had its proposals to revamp the Peel Centre at Whitebirk blocked twice by Hyndburn Council, has withdrawn its appeal.

It's not the end of the matter though as Peel has a second application to expand the site pending.

Today Blackburn and Hyndburn traders welcomed the decision but said they would continue to fight the plan.

The company wants to improve the retail park, near Hyndburn's border with Blackburn. But to fund the £26million transformation it needs to re-classify the land from just "bulky goods" sales to mixed use.

Under the first application Peel wanted to build six new shops, and Next, Boots and the Arcadia group, which owns Dorothy Perkins and Burtons, were signed up.

Peel has changed the number of shops to four and named Asda Living, a non-food store that sells electricals and George clothing, as the fourth.

Plans for two restaurants have been dropped, but improvements like removing electricity pylons, providing another junction on to Whitebirk Drive, and two new bus stops remain in the second application.

The company claims improvements would stop shoppers travelling to retail parks in Bolton and Preston, and also create 500 new jobs. But opponents said expanding the site would reduce footfall in town centres.

Gareth Finch, from Peel Holdings, headed by Rossendale man John Whittaker, said: "All of the proposed named retailers operate a dual in-town and out-of-town format in various locations across Lancashire they simply want to operate in the same way in Hyndburn."

He said the decision had been made to show goodwill and save the company and the council the time and expense of the appeal.

But he said if the second application was unsuccessful the company would go all the way with an appeal.

He said consultation carried out for the firm found that 491 out of 494 responses were in favour of the proposals and of 1,321 Hyndburn residents who responded to the mailed-out newsletter, 1,131 indicated support.

Peter Aspin, president of Hyndburn Chamber of Trade, added: "We're glad they have withdrawn the appeal but there's still a second planning application. Our position will be the same, we will fight against it."

David Cottam, president of Blackburn and District Chamber of Trade, said: "We are pleased that they have dropped their appeal, it means that someone has some sense."

Coun Andy Kay, executive member for regeneration at Blackburn with Darwen Council, said: "We welcome this as an indication of the strength of our case against out of town developments that would damage both Accrington and Blackburn town centres."