A PROJECT to transform a derelict pub into a new Morrisons store is back on track — with 13 homes and three apartments also being planned for the site.

Fears had been raised about the future of the former site of the Greenwood Arms pub as Morrisons said it had "slowed down" its store opening programme — but developers say the project is now continuing.

The 7,000 square foot site, in Chorley New Road, Horwich, will include the Morrisons store as well as sandwich store Subway, bakery Greenhalgh's and charity shop Barnardos.

The block will also include three residential apartments on the upper floor, in addition to the retail stores.

Developers Barnfield Construction and Real Estate Development Partnerships, who are working on a joint venture, also said that a second phase of the development would see the former bowling green at the pub being developed into 13 three and four bedroom homes.

Work on this project has also started, and it is due to be completed by spring next year.

Tim Webber, managing director of Barnfield, said: “We’re delighted to have started on site at our first joint venture development with Real Estate Development Partnerships.

"When we acquired the site, the pub had been badly damaged and had become a bit of an eyesore.

"The redevelopment will provide a much needed amenity in the locality and the fact that all four units are pre-let is clearly a very positive sign.”

The former pub has been derelict since 2011 and the site has been the subject of a number of failed planning applications in the past.

Morrisons previously said that it hoped the store would open at the beginning of this year, and that it would create 20 jobs.

The derelict building has also been targeted in suspected arson attacks in 2012, and has remained in a damaged state since.

Simon Gallanders, development surveyor at Real Estate Development Partnerships, added: “It is very pleasing to be underway and to be working with Barnfield on what will be a great addition to the area.

"With Morrison’s construction well underway we now look at a late summer date in which work for the residential scheme will commence. We are also on the hunt for other opportunities to add to the joint venture pipeline.”