COLCHESTER’S ex-Odeon cinema has gone on the market for £1.5million.

The derelict cinema, in Crouch Street, has been closed for ten years and has become an eyesore.

Now owner Steve Peri has admitted defeat in his hopes to redevelop the site as a nightclub. The announcement has been welcomed by local traders, who have complained the building brings down the area.

Deborah Phelps, owner of Secret Garden Trading, in Crouch Street, said: “It is a beautiful building, but it is an eyesore and I would love to see it turned into something.

“It might be good as an indoor market. Anything is better than how it is now. Years ago, Crouch Street was lovely but it needs tidying up.”

Jo Dilworth, of Dilly’s florists, said: “The Odeon has become a tramps’ toilet. We favour a restaurant and flats there.”

Richard Kedar, owner of RJK Newsagents, said: “It is horrible at the moment.

“The building is derelict and anything would be better than it is.” The former cinema dates back to 1931, but is not a listed building. It covers 22,600 sq ft over four floors.

The property is being marketed by property consultants Whybrow, which is also handling the leasing of the historic 15th century Grade II* listed Tymperleys for Colchester Council.

Whybrow managing director Ewan Dodds, said: “The Odeon is a grandiose, art deco building which presents a unique opportunity.

“It is a huge bit of retail estate, the like of which you don’t often get in Colchester.

“It is in a lovely retail area – Crouch Street is one of our gems with an eclectic mix of independent shops.

“It could be appropriate for a retailer looking for a large space or for a mixture of residential use and a restaurant.

“There is an opportunity for someone who wants to regenerate and refurbish it.’’ Mr Dodds added: “It is iconic and I would love to see it in its current form. But you often see innovative developers who make places into something different and special.”

Mr Dodds, who is also chairman of the Colchester Business Group, said he thought the asking price realistic.

He said: “These are tough times, but Colchester is a hugely vibrant town. Any other town would be crying out for what we have here in the retail sector with the Culver Square and Lion Walk shopping centres and the independent stores along Sir Isaacs Walk and Eld Lane.”