Plans to redevelop the Grade II listed Locarno and Old Town Hall in Swindon are in doubt, after the developer went into administration.
Bach Homes was due to transform part of the Victorian ballroom and town hall into restaurants, bars and flats.
Insolvency practitioner Harrisons has been appointed to handle the company's administration process.
Swindon borough councillor Mike Bawden said he hoped the scheme could be saved.
"If the economic climate hadn't have deteriorated the way it has in the last six or nine months, I do believe the scheme would have been underway," he said.
"As far as our legal advice is concerned, the particular subsidiary of what was Bach Homes still exists and is capable of delivering."
The buildings have been empty for years and were badly damaged by fire in 2003 and 2004.
Planning permission for the redevelopment scheme was given by the borough council in February 2008.