PASSIONATE Dudley Hippodrome campaigners have been dealt a devastating blow after the company that offered to plough £8million into the iconic building announced they were pulling out.

The Rok Group has withdrawn its investment bid to acquire, re-open and refurbish the former cinema and bingo hall due to unresolved issues regarding costs of removing asbestos and the use of the car park at the rear of the theatre, which is used by Dudley Zoo.

Jason Francis, CEO at the Midlands-based company, admitted the decision was made "with regret" as the venue had "fantastic potential".

He also slammed Dudley Council for not showing sufficient interest in the plans, adding: "We have found it very frustrating that despite pledging to invest £8 million into the project, and therefore community, not once did any elected member, councillor or head of planning feel it important enough to come and meet us personally."

Friends of the Hippodrome, who have run a long-standing campaign to save the venue, said the news was “disappointing” but group member and borough personality Garry Sawyers, also known as Black Country Gaz, said they would never give up on their dreams of seeing the theatre being restored.

Mr Sawyers said that the venue would bring "life and soul" back to Dudley and give people a reason to visit the town during the evenings.

He continued: "It was a very involved plan for a modern entertainment venue.

"I dare say people would have taken advantage of having an evening in Dudley and used the hotels that are within walking distance, these businesses are Dudley businesses that could have got an income from the use of the Hippodrome.

"The council need to wake up soon and ask them to come back to the table or the chance will be gone forever, if it isn't already."

John Millar, Dudley Council's acting strategic director for economy, environment and housing, said it was "unfortunate" outcome but the council would continue to look at any viable proposal with an open mind.

He said: “The series of conditions attached to the Rok proposal in order to make the scheme viable from their side were in part not deliverable.

"They involved land outside the council’s control but also included demands that were outside of the council’s legal powers and carried a level of financial risk in the region of £1m that we could not protect Dudley council tax payers from.

“Rok group has been provided with support from senior officers throughout the discussions and members have been regularly briefed.”

But the explanation did not sit well with Sedgley councillor and UKIP's Dudley North candidate Bill Etheridge who said: "I support the Hippodrome campaign and consider it an important heritage site that could be a great asset to Dudley and the surrounding areas.

"Dudley Council has continued to mishandle this situation disastrously they are not fit for purpose."

Councillor Paul Brothwood, UKIP's group leader in Dudley has called for an extraordinary meeting of the council with regard to the site.

He said: "Dudley Council haven't been playing ball so we're calling a meeting of all 72 councillors.

"My understanding is Dudley Council has never been to meet with Rok Investments. What have they been doing for the last 18 months? We all feel very let down.

"Dudley Council doesn't seem hungry for this investment - £8m is a huge investment."

Cllr Brothwood added: "It's not just our group - we hope the other parties come out and attend. We need investment in Dudley. I know it's during an election but this is important."

A date for the meeting is still to be determined.