THE proposed £100m redevelopment of Liverpool’s historic Hope Street has become the latest victim of the credit crunch.

Maghull Developments, which has mortgages for the project with crisis-hit Royal Bank of Scotland, said it would not be able to finance the mixed-use scheme until it had pre-let a significant proportion of the project.

Managing director Mike Hanlon also said he was unable to give a start date for its £7m office, apartment and retail development on Crosby’s former Central Buildings site.

The company has now applied for permission to build an additional 14 car parking spaces on the site of Josephine Butler House, on the junction of Hope Street and Myrtle Street.

Last year, the company was accused of “hacking the front” off the historic building.

Maghull caused outrage when it claimed it was carrying out “specialist restoration work to the stone facade” of the building ahead of an application to have the building listed.

English Heritage refused to list the building and Maghull was eventually given permission to replace the 1867 former hospital building with 263 basement car parking spaces, a high-class mini market, restaurants, and office space.

The project was essential to the other developments in Hope Street for a hotel and more than 50 apartments, as it would provide car parking for them.

But last night the company said it would be “crystal ball gazing” to predict when work might start.

Its plan is to expand the surface car park on the site of Josephine Butler House from 53 to 67, causing fresh anger.

Liberal Democrat Cllr Berni Turner, historic environment champion, said: “The facade of the building was really attractive, and now we are getting a car park in its place, it’s very disappointing.”