PLANS to restore part of a derelict eyesore on the outskirts of a village are under threat after the developer responsible for the scheme went into receivership.

Last year, Blackthorn Homes revealed plans to transform the front section of St Peter’s School, in Gainford, near Darlington, into a luxury retirement flats complex, including a swimming pool, gym and bistro.

The plan was welcomed by residents of Gainford, who have seen the building fall into disrepair since it closed as a nursing home in 1998.

On several occasions it has been the victim of break-ins, theft and arson.

In September, Durham County Council’s planning committee gave the go-ahead for Blackthorn Homes, based in Wigan, to begin developing the north side of the building, which was built in about 1900.

The development would create jobs and provide extra facilities for people in the area.

There are no plans for the other half of the site, which is owned by Kebbell Homes and is still derelict.

Nicky Pennell, from Gainford, said: “It is very disappointing.

“Hopefully, somebody else may come forward and continue the work that has already been done by Blackthorn.”

Gainford Parish Council chairman Clive Dennis said: “From a planning point of view, everyone – the residents, the parish council, Teesdale District Council and then Durham County Council – was very supportive of the Blackthorn project and we are all still quite keen to see it proceed.

“Just because Blackthorn might not be able to do it does not mean the project will not be finished.

“St Peter’s is an asset and I am sure other companies would be interested in it too. I am fairly hopeful they will find some other organisation to take it over.”

No one from Blackthorn Homes was available to comment.