A buyer is being sought for the Shankly Preston as financial difficulties mean work has yet again stalled at the former post office on the Flag Market.

Signature Living Preston went into administration in August owing more than £22m to its creditors.

LancsLive reports that the process was launched by a lender that had put £12m into the project. Another £4m was owed to a construction firm involved in the development. Almost £7m is owed to unsecured creditors.

Lawrence Kenwright’s Signature Living hospitality group bought the 119-year old building from Preston City Council in 2016.

The £15m city centre project was set see the property converted into a 65-room hotel with bar, restaurant, wedding and events suite, and rooftop terrace.

Numerous opening dates have been touted since development began more than six years ago. Most recently, a launch date of summer 2021 was advertised.

Read more: First views from Shankly Hotel’s rooftop bar area as summer 2021 opening set

An update from administrator Michael Lennon has revealed the delays related to factors including Brexit, asbestos and Covid-19.

Mr Lennon said: “Significant delays to the development of the property occurred from 2019 as a result of Brexit uncertainty. Asbestos that was found within the building that needed rectifying and the Covid-19 lockdown measures that put a halt to all property development.

“Activity resumed on the Property intermittently from June 2020 with the easing of the Covid-19 lockdown measures, for example, the roof extension was completed, and interior works were progressed.

“However, the company failed to make sufficient progress with building compliance matters, including the fire strategy continuing to not be agreed via building control despite positive site meetings with Preston City Council. Cladding was also an area that required attention.” 

Mr Lennon is hopeful a buyer can be found to complete the development, with a marketing exercise set to be launched.

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