Plans for the construction of a new £100m retail and leisure development at Llanfairpwll on Anglesey, North Wales, have been withdrawn by the company behind the scheme, Ynys Mon Estates.

The Isle of Anglesey County Council has confirmed that it has received written confirmation from the developer that it had pulled out of the Ty Mawr project seven months after it was given the green light by planners. A Cineworld multiplex cinema, a ten-pin bowling alley and a health and fitness centre were included as part of the project, which was to be the subject of a public inquiry after called in by the Welsh Assembly Government in April.

However, the council has now said that Ynys Mon Estates' decision to pull out of the development was a "huge blow" for the island, dashing hopes of the project delivering much-needed investment in the local area. Council leader Clive McGregor said: "With the application now withdrawn, however, neither the inquiry nor the project itself will go ahead. The news represents a huge blow and a missed opportunity in terms of new investment and jobs on the island.

"Attracting inward investment to the island is difficult enough at the best of times and, with Anglesey Aluminium's impending closure, we continue to face uncertain times during the current harsh economic climate." Plans for the Ty Mawr scheme, which had been designed to reflect the culture and heritage of Anglesey, also included restaurants, cafés, water features and a nature park.