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Plans for a new Tesco superstore on the former Debenhams site in Derby city centre have been shelved.
The supermarket firm said it had pulled out of the deal because of increasing logistical problems and rising costs.
The building - once valued at £5m - has stood empty since the department store moved into the new Westfield shopping centre last October.
Westfield, which owns the site, said it was actively talking to a number of other possible new buyers.
Some businesses have said buildings left empty by firms moving to the Westfield centre are spoiling the city centre.
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