Plans for a major new retail store to replace the Harvest Court Mall, in George St, Dunedin, have been put on hold.
Carl Angus, of Marca Investments, told the Otago Daily Times yesterday that he had stopped the resource consent process because a retailer he was in discussion with was "not yet in a position to commit" to the project.
"Something will happen. Just right at the moment the timing doesn't suit them, and we've got issues ourselves that we need to address."
Mr Angus has been advertising a new "bulk retail" building for the site he owns at 220 George St.
Concept drawings showed a four-storey building with a floor area of 1500sqm.
Mr Angus said the retailer was from outside Dunedin. He was "still talking" to various parties and he was looking at "other opportunities".
One of the tenants in the building, Munns Menswear, is due to close in the next six to eight weeks.
Director Peter Lucas said the Christchurch-based company had been given the opportunity to surrender the lease for the premises but would not be reopening elsewhere in Dunedin at present.
Five staff would be made redundant.
Mr Lucas said the store's turnover had been "pretty good", and the issue had been with rent that was "quite high".
Being in a "prime retail" area did not fit the company's business model. Munns has two stores in Christchurch, one in Wellington and three in Auckland.
Munns Menswear was established 90 years ago and set up in Dunedin about 2004.
