The £35 million regeneration of one of Birmingham's most famous buildings hangs in the balance after funders backing the project pulled out, leaving creditors more than £9 million out of pocket.
Planning permission was awarded in March 2018 to carry out the wholesale renovation of the run-down Methodist Central Hall to create a major mixed-use scheme led by a new hotel.
But the project has hit the buffers after administrators were called in because funders were unwilling to inject further capital into the project, aspects of which had become "unviable" amid inflated costs.
The consented scheme was to be led by a new 147-bedroom hotel run by US group Dream Hotels under its 'Unscripted' brand - its first venue in Europe.
Other plans included three additional storeys, a 75-room apart-hotel, live music venue, rooftop bar and commercial units while the building's iconic organ would be restored and made into a centrepiece of a new gastro hall and kitchen.
Administrators from Abbott Fielding and David Rubin & Partners were appointed in March to Ciel Central Hall Ltd.
According to a newly published report about their appointment, Ciel Central Hall was set up in January 2017 by London-based property investor Ciel Capital to acquire the grade II*-listed building and carry out the regeneration.
Administrators said initial funding for the project was via a third party but, when additional capital was required, no agreement could be reached so London-based investors Reditum Capital and Midos Group stepped in to "rescue the project".
West Midlands Commercial Property News
Most Read
The report said: "The two firms reviewed the financial position and existing business plan and it became abundantly clear many aspects of the plan were unviable and poor management decisions had led to costs being unnecessarily inflated.
"It was clear the project was in desperate need of additional funding however, having inherited the parlous financial position, neither Reditum Capital nor Midos Group were willing to inject further funds unless other creditors of the company agreed to compromise their debts.
"Regrettably, despite their attempts to reach agreements with all creditors, they were unsuccessful."
A winding up petition was issued against Ciel Central Hall in March which prompted Reditum Capital and Midos Group to seek the appointment of administrators.
The report showed the company's creditors were owed £9.3 million at the time of the administration, with Reditum Capital and Midos Group owed £4.5 million each.
Methodist Central Hall, which was completed in 1904, is currently boarded up with little sign of activity and only a couple of its ground floor commercial units are still in use.
It was once and welcomed major artists such as David Bowie, Daft Punk and Blur between 1989 and 2017.
Don’t miss
The building has previously been named on the 'At Risk' register by Historic England and its regeneration was expected to create at least 100 new jobs.
Administrators said the site in Corporation Street was now being marketed again in the hope another funder would come forward to kick start the project.
Ciel Capital itself is not in administration and continues to trade.
A spokesman for the company said: "Methodist Central Hall represents a rare consented development opportunity of national interest for an investor to take forward and deliver a landmark, hotel-led mixed-use scheme in one of Birmingham's great buildings."