A developer which has failed to start work on a multi-million redevelopment project in Dorset is to face legal action from Weymouth and Portland Borough Council (WPBC).

Howard Holdings was selected from a shortlist of three companies as the preferred developer to lead the revamp of Weymouth Pavilion, but in November was issued with a demand for £23,000 in consultant's fees owed to the council. However, the council says that it has not received a response from Howard Holdings, and has now submitted an application to wind up the company, which will be heard at the insolvency court on 19 March.

The developer's backer, Europa, is supporting WPBC's application to the insolvency court as it is also owed money by Howard Holdings. Future proposals for the redevelopment of Weymouth Pavilion will be discussed by the council in July, although one option is for Europa to 'step-in' as development partner if a winding up order is enforced.

Europa will have three months to decide whether to take over Howard Holdings' plans for the redevelopment of the pavilion, which include a new ferry terminal facility, a new World Heritage visitor centre, a 290-berth marina, and a new public pier, as well as a four-star, 140-bedroom hotel. Howard Legg, WPBC brief holder for partnerships and special projects, said: "The council is well down the road of the legal process with Howard Holdings and each milestone has to be passed before the process advances further. As such, the 19 March court hearing is critical."