Bradford’s regeneration chief has called for “clarification” on the multi-million pound New Victoria Place scheme after it emerged one of the companies behind the development of the derelict former Odeon has gone into administration.

Developers Langtree Artisan – a partnership between Langtree Group PLC and Artisan H Limited – signed an agreement with the Odeon’s former owners, Yorkshire Forward, to develop the former cinema into a hotel, shops, restaurants and offices.

However, Bradford Councillor David Green, portfolio holder for regeneration and the economy called for more information on the future of the development after Artisan H Limited went into administration. A spokesman for administrators KPMG confirmed that Artisan H Limited had entered administration. Mark Firman and Howard Smith are the administrators.

KPMG confirmed that Artisan H was one of several companies owned by Artisan Holdings, based in Bolton, Greater Manchester. The developer lost control of a project in Sheffield after Artisan H went into administration in December. The Fox Hill development was proposed as a £27 million scheme for 179 homes, which received £1.8 million from the HCA.

Coun Green said: “The Council is seeking clarification from the HCA (Homes and Community Association), which owns the building, to try to identify what the situation is in terms of the contractual development agreement (between Langtree Artisan and the HCA). Clearly, what we want is clarity about the future of the building and how they are going to take it forward.”

Langtree Artisan signed an agreement with Yorkshire Forward, the then owners of the Odeon, in 2007 and permission was granted for the building to be demolished for Langtree's New Victoria Place plans in 2009, subject to a legal agreement being signed.

This has still not been completed with delays blamed on the uncertainty created by the building’s transfer from the now defunct Yorkshire Forward to the current owner, the government’s Homes and Community Agency (HCA).

Tom Hustler, a spokesman for the HCA, admitted the situation was “far from ideal” but said that Artisan’s financial situation would have “no effect” over the re-development of the crumbling Odeon building.

He said a separate contractual agreement had been signed, which means that one company will take over the development should the other run into difficulties.

He said the HCA would sell the building to the developer after the legal agreement, known as a section 106, is signed. The developer – currently Langtree Artisan – will then demolish the building.

Mr Hustler said: “Langtree Artisan in a joint venture and something that we require is that each of the partners gives a cross-company guarantee.”

“It will not affect the development.”

The Telegraph & Argus exclusively revealed this week the shocking state of the Odeon building. Experts employed by the HCA discovered asbestos, vermin, signs of drug use and fire hazards.

The HCA made it clear that the rapid deterioration of mortar, bricks and stonework on the exterior of the former Odeon did not pose a public danger to the public.

However, Mr Hustler said the ageing building had now been reinforced with scaffolding and safety nets, saying it was safer now than at any time for 20 years.