The developer behind a long-stalled town centre development dubbed ‘the Big Grid’ is facing winding-up proceedings.

Royal Bank of Scotland International is seeking the winding up of Duke Street Commercial Ltd.

The company secured planning permission in June 2019 to demolish 42-50 Duke Street, formerly the site of the KFC restaurant, and replace it with a six-storey building containing shops and flats (18/00641/B).

An appeal against the decision by Tevir Properties was dismissed in December that year.

Following demolition, Duke Street Commercial submitted revised plans (20/00679/B), increasing the number of flats from 11 to 20 and removing proposals for basement parking. These were approved in August 2021.

Construction began later in 2021, with the steel framework for all six storeys of the building completed by November that year.

However, work then ground to a halt and, despite briefly resuming in February 2022 and February 2024, the site has remained an eyesore, with its exposed steel framework.

In February this year, fresh plans emerged to transform the site.

The Manx Government’s Department for Enterprise revealed it was one of two regeneration projects in lower Douglas to have been awarded conditional funding through its Island Infrastructure Scheme.

The scheme offers grants of up to 25% towards development costs.

The DfE said the Duke Street project aimed to deliver 38 serviced apartments alongside new retail space.

It said the scheme was ‘currently progressing’ through the planning application process.

However, no such application has yet been submitted to planners.

Signs on the site hoardings advertise an ‘exciting’ development by Global Island, promising 20 new-build apartments ‘coming soon’.

RBSI’s winding-up petition is due to be heard at Douglas High Court on October 30.

Creditors wishing to support or oppose a winding-up order may attend the hearing, provided they have notified the claimant’s advocates in advance.