The latest twist in the battle to open a new supermarket in the town unfolded before a packed St John's Methodist Church hall on Monday night.

Tesco has submitted an application to create a store on the old Kippax Biscuits and market hall sites in the town centre. The scheme would involve knocking down Colne Library and incorporating new library facilities in the development.

Sainsbury's is eyeing up the former Coach House Antiques site in Windsor Street, with the plan pictured here.

More than 100 residents turned up expecting to put their questions to representatives of both companies, but they were left frustrated.

Agents DPP, acting on behalf of Tesco, pulled out of the meeting on Friday afternoon, saying they were reviewing their plans and it was therefore not appropriate to put them in the public domain.

Lawyers then advised Sainsbury's, which submitted its plans three
months before its rival in November, not to attend without Tesco's participation, as it could have prejudiced a future public inquiry.

Sainsbury's development executive for Northern England, Joanne Try, said she was disappointed she was unable to speak. "We welcomed the chance to discuss the proposals with local residents and stakeholders, believing this would provide an ideal opportunity to answer any questions regarding the plans," he said.

"We were geared up for a public debate, and I was rehearsing our presentation on Monday afternoon when I was advised not to speak."

The meeting went ahead with the aim of arming people with the facts about the two applications. Pendle Council leader Coun. Alan Davies and planning manager Mr Neil Watson gave a presentation before fielding questions from the floor.

Developer Giles Berry from City Park, a joint venture with Barnfield Construction, said his company was committed to its proposals for a health centre - on the site proposed by Tesco. City Park's plans, which were registered the week after Tesco's, do not include demolition of the library.

But a spokesman for East Lancashire Primary Care Trust, which is bidding to create a £10m health facility in Colne, said Trust bosses had not ruled any sites in or out, and had not been in contact with any developers.

The meeting was attended by members of Pendle Council's Colne and District Committee, which will decide on the applications.

Mr Watson said he did not expect either set of plans to be put forward for a decision until May at the earliest.