Brewing giants JD Wetherspoon look set to pull out of the race to take over the Co-Op supermarket in Billericay High Street.
Rumours were rife in the town that the brewery was going to transform the supermarket into a huge pub.
But a Co-Op spokesman today said the brewers had given up on the plans - and Wetherspoon confirmed it was looking for other sites in the town.
The Co-Op spokesman said it was business as usual for the supermarket, adding: "It would be fair to say Wetherspoons were looking for a site in Billericay High Street and they approached us to see if we would be interested in selling our site.
"It progressed to the next stage, where we believe Wetherspoons sought planning approval for a change of use.
"As we understand it they have withdrawn their interest."
Wetherspoon clashed with the Co-Op by saying it was still interested in the site - but it was also looking elsewhere.
A spokesman said: "We are still looking at that site but, failing that, we will still be interested in finding somewhere in Billericay. We do want to be in Billericay."
Worried shoppers flooded the Co-Op head office with calls when it was revealed the store was in talks with Wetherspoon.
It was thought the opening of a new Waitrose store in the High Street had put a dent in the Co-Op's business.
But the group's spokesman hit back, adding: "It's like any offer - you take a look at it. There are no plans to do anything with the Billericay store at the moment."
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