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Hopes for a major leisure complex, to be sited on the former Summerland site in Douglas, have been dashed.
Talks between the Manx government and the Sefton Group have broken down, without agreement on the next crucial stage of the proposals.
John Moss reported live on the issue on Mandate at One:
'If you're going to enjoy the beach, take responsibility for your mess'
Reports of high levels of litter left on Island's shoreline this week
Tributes paid to mum who campaigned for mental health awareness
Charity 'heartbroken' after death of Caroline Kelly who lost her 13-year-old daughter to suicide
Paddleboarders rescued after being carried offshore
Port Erin RNLI respond to call on Thursday afternoon as pair cling to rock and fishing buoy
Firefighters save seagull stuck on M&S building
This is not just any fire and rescue service...
Emergency road closure in Douglas
Teams working on collapsed sewer on Empress Drive