Last year, LMA Architects sought listed building consent to partially demolish the building in Alloway Street - but retain its historic facade.

The plans were approved by South Ayrshire Council planners under delegated powers in September.

The site was to be transformed into a £30 million Care Village, alongside the renovation of the former Arran Mall. Under the plan, new offices and facilities would be set up in most of the existing Hourstons building.

However, in a statement issued yesterday, the local authority said it will now explore other options for the site.

A South Ayrshire Council spokesperson said: “A paper will be brought to council on 6 November to advise councillors that proposals to deliver a Care Village at the Hourstons and Arran Mall site in Ayr is no longer viable due to a lack of funding. This gives the council the opportunity to explore options for the construction of a mix of residential property across the full site representing town centre living and increasing footfall in the town.

A report will go to councillors by March 2026, detailing the different residential options and tenures, including opportunities to dispose of the site on the open market and/or engaging with a development partner to construct housing jointly.

Hourstons closed in February 2019 after 123 years in business in the town, with the loss of 81 jobs.