MORRISONS has pulled out of its proposed new store in Chorley New Road — with the The Co-operative set to take over.

The supermarket chain pulled the plug after falling into financial difficulties. The company previously announced the sale of its M local business and the closure of 11 stores, which meant 900 people losing their jobs.

Now the site of the former Greenwood Arms has been taken over by The Co-op, and the firm has promised a convenience store with a focus on fresh, healthy foods, meal ideas and essentials.

Work to build the site has now been completed, and The Co-op is currently fitting out the shop.

A Barnardo's charity shop is also fitting out a store on the site, and Greenhalgh's is also due to start work shortly. Subway has already opened.

The commercial aspect to the development has been completed, and work on 13 three and four bedroom homes at the site will start next month.

The houses are due to be finished by autumn next year, and Miller Metcalfe will start selling the properties in the new year.

The project on the 7,000 square foot site has been a joint venture between Barnfield Construction and Real Estate Development Partnerships.

Tim Webber, managing director of Barnfield, said: “We are delighted to have concluded work on the commercial block and it is great to see the tenant line-up taking shape with Subway already trading and the other tenants soon to follow.

"Before our involvement, the site had become a very noticeable eyesore on what is a very busy road and the people of Horwich have waited some time to see this development come to fruition and it is therefore very pleasing to have reached this stage.

"We are now looking forward to starting work on the residential phase”.

The pub had remained derelict since 2011 and was targeted in suspected arson attacks the following year.

Simon Gallanders, development surveyor at Real Estate, added: “After we re-approached the market again, we were delighted to conclude a deal quickly with the Co-op, we feel that they will be an excellent fit within the scheme, with the community retailer serving the area with a much needed convenience provision.

"We are very pleased with how the JV with Barnfield has gone and we are looking forward to working on similar schemes with them going forwards."