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Last Updated: Friday, 7 March, 2003, 12:03 GMT
Stadium blow for Sky Blues
Graphic of the Arena complex, Coventry
The city council is one of the investors in the project
A construction company has pulled out of the project to build a 60m stadium for Coventry City, threatening to delay the football club's move to its new home.

Birse has withdrawn from its role in helping develop the 32,000-seat Coventry Arena, blaming the heavy losses it suffered during a similar venture with Leicester City.

The Cheshire-based company has been working on the design of the stadium for six weeks, but pulled out of the project on Thursday.

The football club is stressing the development will still go ahead, and it is hoped a replacement for Birse will be announced within 10 weeks.