Crownway Developments Ltd is the developer at the Knotts Drive and Standroyd sites and local councillors are now concerned the town will have two unfinished developments that could remain a blot on the area.

A spokesman at chartered accountants and business advisers Baker Tilly Restructuring and Recovery LLP said this week that Crownway Developments Ltd was not in liquidation, but will hold a meeting with creditors on October 13th.

Work has come to a standstill at both Crownway's Knotts Drive complex, where an incomplete block of apartments stands on an unsightly building site, and on Standroyd, where the final housing scheme was near completion.

Coun. Tony Greaves said the situation was a "real worry for the town". He believed 30 jobs had already been lost.

"We are very concerned - this is not good for Colne," he said. "We're just hoping the receivers can come in and make a go of salvaging what's left of this company. Both sites in Colne are owned by Maple Developments, which is based in the Isle of Man. Pendle officers are currently trying to find out what its intentions are."

Coun. Greaves thought it would be more likely Maple Developments would contract another firm to finish off the Standroyd development. He added: "Standroyd is not in a bad condition. One block was finished some time ago, which is fully occupied. The other one looks pretty complete, but it's not finished yet."

He added: "It was quite exciting when the Knotts Drive site got planning permission. Things really started to look up for that area, but now it's all gone wrong. The pavement in Knotts Lane is blocked - there were supposed to be shops along there, but as it stands at the moment, pedestrians are being shoved out on to the road. We all thought 'great' when a licensing application came in for a Spar shop on there, but I have no idea what's happening with that now."

We were unable to contact Mr Richard Lewis, managing director of Crownway Developments, for a comment.