Plans to build an eight-screen cinema complex at the Wellgate have been pulled after talks between shopping centre bosses and an independent cinema firm collapsed.
The Tele has learned that discussions between the Wellgate and The Light Cinemas have stalled, with the cinema chain now in early discussions over an alternative site in the city.
The news is a blow to the Wellgate, which enjoyed a boost in growth recently.
Bosses have welcomed the fitness chain Xercise4Less and brand TJ Hughes in the past year.
It was hoped the cinema would open inside the Wellgate complex last year but plans were put on hold after the collapse of BHS.
The planning application for the cinema lapsed last year and no further application has been submitted by Wellgate owner Orchard Street Investment Management.
In addition, the area once earmarked for the cinema has since been taken over by the new gym.
A source with knowledge of the discussions said talks between The Light Cinemas and Orchard Park had “stalled” despite positive discussions earlier this year.
The source said: “There was going to be a plan to completely reinvent the Wellgate as part of a significant redevelopment.
“However, it’s likely that changes in retail up and down the UK have caused a complete rethink.”
It is believed that The Light Cinemas, which specialise in giving cinemagoers a “premium” experience with craft beers, fresh coffees and ice cream, is discussing other sites in Dundee.
The business was recently named a growing firm to watch in The Sunday Times’ Fast Track 100 list.
John Sullivan, a director with The Light Cinemas, said the company remained “committed” to bringing a cinema to Dundee but declined to comment further.
He said: “It is now being universally agreed by planners and local authorities that leisure needs to be brought back into town centres.
“Cinema is a principal anchor for leisure and an evening economy that appeals to all age groups and is family friendly.”
Representatives for the Wellgate and Orchard Street Investment Management declined to comment.