Jarrow Brewery has halted its plan to convert historic St Andrew's Church at Hebburn riverside into a new brewery plant after spending £48,000 in a 20 month journey.
The brewery has failed to reach an agreement with council bosses over various aspects of the conversion scheme, which finally lead to the abandonment of the plan.
Jarrow Brewery owners Jess and Alison McConnell have also lost a business opportunity with Carlsberg that would have allowed the brewery's products to be sold in pubs throughout the UK.
The abrupt end of the conversion plan may also disqualify its chances to win cash support of £140,000 from RGF with a condition to invest £502,000 over the next three years.
Jarrow Brewery owner McConnell was quoted by Shields Gazette as saying that the brewery has lost the chance to transform St Andrew's Church and the deal with Carlsberg, dependent on it reaching an agreement with South Tyneside Council on the scheme by the end of this calendar year.
"That's not going to happen now, and this whole saga has set Jarrow Brewery back by years," McConnell added.
