Developers of the Tudno Castle Hotel site have been forced to undergo a rethink after one of the business planned for the site pulled out.

Prezzo announced last week it had entered company voluntary agreement (CVA) - a statutory procedure designed to help a company form a compromise or arrangement between it and its creditors - and would no longer be bringing a store to Llandudno.

Despite the announcement Tudno Castle developer Opus North said plans for the site were still progressing and the search was already underway to find a replacement for Prezzo.

Opus North's James Farnaby said: "The Tudno Castle development will be a great asset to Llandudno and is progressing well.

"It is disappointing that Prezzo will not now be part of the scheme, but we are speaking to number of other restaurants and we hope to have more news for local people soon."

Plans for the site will see the demolition of the remainder of the building and the recreation of the listed façade with a 63-bedroom hotel, five restaurants and a space for a retail store.

Work on the Tudno Castle is expected to recommence soon, awaiting approval from Cadw, after work was halted last year.

Planning permission was given back in 2014 for the project with the hope of maintaining the original facade. It has since been found it is too much in disrepair and a new proposal has been passed by Conwy council's planning committee to fully demolish the Tudno Castle Hotel and recreate the listed façade.

Prezzo announced it would be entering CVA last week with the intention of securing a sustainable, long-term future for the company.

It will seek the approval of creditors to reduce the rent costs of some sites and reshape the business around a smaller, profitable core of restaurants with strong growth prospects.

While 208 restaurants will continue to trade as normal, the company expects that 94 will be closed commencing from April 2018, with every effort being made to redeploy those team members affected by the closures.

Prezzo CEO, Jon Hendry-Pickup, added: "I firmly believe the business has a bright future. While the decision to enter into a CVA process was extremely tough, it was crucial to ensuring we’re able to continue to serve our customers for years to come.”