A brewer has pulled out of a deal to revive the former Rosebank Distillery on the Forth & Clyde Canal.
Arran Brewery had planned to launch its own whisky, as well as house a brewery and bottling facility in the building which is lying empty.
But boss Gerald Michaluk claimed his company was unable to get funding for the project after the building was classed as ‘abandoned’ in planning terms by Falkirk Council leading to potential investors pulling out.
The brewer had been offered a £500,000 grant by Scottish Heritage and was hoping to secure Lottery cash.
The local authority said it had done all in its powers to support the plans.
Mr Michaluk said: “We were extremely disappointed at the council’s decision even though our legal team made a strong argument for overturning their only reason for considering the site abandoned.”
A spokesman for Falkirk Council said: “It is disappointing that Arran Brewery has decided not to proceed any further with the development at Rosebank and we are hopeful that a new developer may come forward.
“Throughout our discussions, we were able to offer advice and guidance on a potential planning application for the site, however this was rejected.”
A Scottish Canals spokesperson said: “The contract we had with Arran Brewery expired in 2013 and we had extended this by a number of months as a gesture of goodwill. As a prime site and an important location for us, we felt it only right to consider other options for Rosebank but would happily restart negotiations if they can demonstrate funding is in place.”