A SMALL business has scuppered plans for a pub and flats on a multi-million pound redevelopment of Droitwich town centre because the owner refuses to budge unless the price is right.

Dormer Plant Hire has seven years to run on its lease and owner Matt Dormer says he will only leave for a fair price.

We reported yesterday that work to build an M&Co department store and a Muffin Break coffee house in the town centre was set to go ahead.

But at the launch presentation in the town on Monday, an idea to build a pub and flats over the top of the £4 million development had mysteriously been dropped from plans despite amendments to the planning permission being approved just days ago.

Instead, the building supplies store, which still occupies one of the units in the town, will remain and the other units - currently all vacant - will be demolished around it in a series of work branded phase 2'.

At the meeting, town centre manager Kevin O'Hara refused to confirm why the plan had changed other than that there had been a "little local difficulty".

However, the hire shop's managing director Matt Dormer has revealed that his shop has another seven years on its lease and claims Kandahar real estate, which owns the Salters shopping centre, has refused to make him a sensible offer to leave.

He said: "If I were ceasing trading I would have to pay out the rest of my lease. That's what I expect them to do to me.

"I'm not saying I'm not moving. I just want a fair price.

"I can't believe they are being so naive as to think they can do this around me. It will cost them three times as much this way."

Mr Dormer thinks the development will be good for the town but claims Kandahar has refused to negotiate with him or to make any formal offers.

He believes a previous tenant was bought out of a contract at a rate of £6,000 per month and wants the same, pro rata for the time left to expire on his lease.

However, Kandahar director Mike Tyler claimed the company had had extensive discussions with the shop.

He said: "The tenants said they had a very profitable business and did not want to leave. We have respected their wishes and all development plans have been designed and agreed with this in mind and so all building works will proceed without disturbing the store."

Kandahar would not comment on how much it had offered other outlets.

The shop has been operating in the town for six years when Mr Dormer bought out the previous business, Mycohire.

Amendments to the planning permission to create one large pub instead of two units were agreed at a Wychavon District Council meeting on Thursday, May 31, when it was suggested a chain such as JD Wetherspoon could move in.