IKEA has ditched plans to build a store near Chorley amid acute uncertainty on the British high street and while retailers are being hammered with soaring costs.
The Swedish flat pack furniture giant had planned to open a store on a site in Cuerden in 2020, creating 350 jobs.
However, the company has said the commitment is no longer viable.
Lancashire County Council has entered into talks to convince the retailer to move ahead with its plan, saying Ikea's decision was "disappointing".
Ikea had secured planning permission from the council to build the store, which would have been its second largest in the UK.
Geoff Driver, leader of Lancashire County Council, said: "This is extremely disappointing and we will hold discussions over the next few weeks with Ikea, the main anchor occupier for the retail element of strategic development site at Cuerden."
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