The sale of Tynwald Mills shopping centre appears to have fallen through.

Legal proceedings have been launched by current owners Millstreams Ltd against the company that had been due to complete the purchase of the St John’s complex.

It was announced in January that agreement had been reached to sell the business to Sandpiper CI, the largest retailer in the Channel Islands.

The sale, for an undisclosed sum, was due to complete on March 31.

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But in a statement, the owner of Tynwald Mills announced on Monday: ’The board of Millstreams Limited (formerly Tynwald Mills (Isle of Man) Limited) advise that legal proceedings have been commenced in connection with the proposed acquisition of the shares in the company by Sandpiper CI.

’Given the situation it is inappropriate to make further comment at this stage.’

At the time of the sale being announced, Tynwald Mills managing director Stephen Bradley said he was ’delighted’ to have come to an agreement with Sandpiper CI.

He said the move would improve customer choice in the island.

Customers and staff were reassured that nothing would change at the shopping centre, with the ’same faces but more brands’ - and no redundancies were expected.

Tynwald Mills employs more than 110 people, including part-time staff.

Originally a woollen mill, a 50,000 sq ft retail business was established there more than 30 years ago.

Established in 2007, Sandpiper CI was bought in 2015 by a consortium of Channel Islands-based investors assembled by Ravenscroft Limited, an independently owned investment services group which has £2.38bn of assets under administration.

Another part of the Ravenscroft portfolio is Jacksons CI, the company behind the £14.5m multi-franchise car showroom being built on Cooil Road in Braddan.