The transformation of Liverpool's iconic Littlewoods building into a campus of film and TV studios is "facing a viability challenge", according to the developer behind the project.
Work to convert the site on Edge Lane commenced in 2023 but developer CapitalandCentric (CandC) has now told the Liverpool ECHO: "The cost of delivering the project in the current climate exceeds the value of the completed development."
The art deco structure was erected in 1938 as the headquarters of the Littlewoods football pools empire but it was abandoned more than 30 years ago and it cut an increasingly deteriorating figure in the years since. The structure was ravaged by a fire in 2018, while years of vandalism and urban decay took their toll.
CandC purchased the site in 2018 and in December 2023, it commenced the process of transforming the site into the TV and film studio complex in a £70m project - two new 20,000 square foot studio stages are planned to be the first structures to be built on the land, reports . The proposal is that the existing building will be restored to life and will be utilised alongside the new studios, as well as existing facilities at The Depot, which opened in 2021.
It forms a crucial part of Metro Mayor Steve Rotheram's plan to turn Liverpool, which is the country's second-most filmed city into the 'Hollywood of the North'. Planning consent for the construction phase received approval in October 2024.
Tim Heatley, co-founder of the CandC, has now informed the ECHO that the scheme has reached the "pivotal point" of commencing delivery, though it confronts a viability hurdle owing to expenses. Consequently, CandC has begun talks with the government regarding possible funding avenues.
Mr Heatley informed the ECHO: "The Littlewoods Film and Television Studios is a once-in-a-generation opportunity to place Liverpool and the wider city region at the heart of the º£½ÇÊÓƵ's creative industries. Over the past two years, we have been working closely with Liverpool City Council and the Combined Authority to lay the foundations for a world-class film and TV campus that will bring lasting benefits not just to the creative sector, but to the wider economy, local communities, and the city's international reputation.
"As custodians of the iconic Littlewoods Building, we have made real progress behind the scenes. This includes securing planning consents, undertaking vital site preparation, stabilisation and enabling works, and advancing detailed designs that will breathe new life into this much-loved Liverpool landmark.
"We are now at a pivotal point and ready to begin delivery. However, like many major regeneration projects across the º£½ÇÊÓƵ, we are facing a viability challenge. The cost of delivering the project in the current climate exceeds the value of the completed development."
Mr Heatley stated this represents "only part of the picture", noting "Traditional financial appraisals do not fully reflect the transformational impact Littlewoods Studios will bring."
He said the scheme would deliver benefits stretching well beyond Edge Lane, generating hundreds of employment opportunities, serving as a catalyst for regeneration throughout the region and enhancing the city's economic performance.
On seeking government backing, Mr Heatley continued: "As a company, we are fully invested in Liverpool's future. We currently have eight live construction sites, are spending over £3m a week on socially impactful regeneration, and have restored and repurposed more than 25 heritage buildings across the º£½ÇÊÓƵ.
"Our approach is about respecting history while unlocking long-term value and impact for communities, and that is exactly what Littlewoods Studios represents. To help address the current viability gap, we have entered into early discussions with central government to explore potential options for gap funding.
"These conversations are still in the early stages. As with any public funding process, it is complex and requires time, careful consideration, and patience. We are working closely with our public sector partners to present a compelling case that shows why this project matters, not only for Liverpool, but for the wider º£½ÇÊÓƵ creative sector.
"Littlewoods Studios is not just about restoring a building. It is about creating a lasting legacy. We remain absolutely committed to delivering a project that will shape the creative future of Liverpool and the city region for generations to come."
