The UK Fashion Hub has today withdrawn from the running to be the legacy tenant of the 1m sq ft Olympic media centre.
EGi revealed on Wednesday that rival bidder iCITY was being recommended as preferred bidder to become the long term tenant of the press and broadcast centre.
That recommendation was due to be discussed next week at a London Legacy Development Corporation board meeting.
But the UK Fashion Hub decided to withdraw its bid to create a fashion-based wholesaling and manufacturing facility at the site in Hackney.
It is understood that Fashion Hub chiefs have become frustrated by the tender process in recent months.
A statement said: “Throughout the process, the UKFH has maintained that the press and broadcast centre buildings are important public assets and has understood that if a better and more economically beneficial occupier could be found, it would respect that decision.
“Press coverage over the past two days has reported leaks that suggest a decision has already been taken to appoint iCITY as the preferred bidder, despite the LLDC board meeting scheduled for 17 July to make that decision.
“This, and other issues, have compounded the unease felt by the UKFH team that the process has not been as transparent as it should be and therefore the decision has been taken to withdraw.”
The UK Fashion Hub bidders said they would have created more than 4,000 new jobs within three years and more than 12,000 jobs in 10 years as well as generating significant income for the LLDC throughout the term of the 125-year lease.
It is not yet known how the withdrawal will affect the search for a tenant with just one bidder left in a competitive tendering process.
nick.whitten@estatesgazette.com
