Pub chain Wetherspoon has pulled out of plans to open a £1m branch in Belper.
Proposals to build a new premises on Strutt Street were approved by councillors in August last year.
However, the pub giants confirmed this week they would not be going ahead with the plans due to not being able to secure the required opening hours.
Wetherspoon spokesman, Eddie Gershon, said: “We can confirm that Wetherspoon has pulled out of plans to open in Strutt Street.
“Planning for the site was granted, however, the planning permission did not offer Wetherspoon the opening hours that it required.
“As a result the company has decided to pull out of the scheme.
“We are still interested in opening in the town and will continue to look for sites.”
The initial application was approved subject to conditions restricting tandard opening hours between 7am and 11pm, with the beer garden closing at 9pm each evening.
In December 2015 the pub giant sought to increase its opening times between Sunday and Wednesday to 12.30am, and to 1.30am on Thursday, Friday and Saturday, along with extending use of the beer garden area for drinkers up to 11pm.
The announcement is likely to be seen as a major blow for the town as it was hoped that it may help attract other new businesses to open nearby.
The plans would have involved the former Bugsy’s bar and diner, on Strutt Street, transformed into a £1million bar and restaurant.
The development would also have created 45 new jobs.
Residents’ concerns included a lack of parking in the area, negative impact on house prices and on other pubs.