Targetfollow, the developer whose largest asset in the region is Grand Central in Stockport town centre, has been placed into administration by Lloyds bank.
The Norwich-based developer owes Lloyds £680m in loan repayments, one for £230m which matured in July and another for £450m that expired this month.
Targetfollow has failed to start on Grand Central since planning consent was granted in February 2008.
The developer had signed Travelodge as an anchor for the £100m development, alongside 200 new apartments and a car park on Wellington Road South.
Cllr Dave Goddard, leader of Stockport Council, said: "Grand Central has an important role to play in the future of Stockport town centre and we are very keen to progress redevelopment. We are working closely with all parties to ensure the best possible outcome for the site, and are currently taking stock of all options open to us to maximise its potential."
In August 2008, Lend Lease withdrew its support for a £500m redevelopment of the Bridgefield area of Stockport town centre.
The redevelopment would have comprised 650,000 sq ft of shops, a cinema, 250 residential units and 80,000 sq ft of leisure citing deteriorating and unfavourable conditions.
Targetfollow also owns offices in Metropolitan House, Manchester, Winwick Quay in Warrington and the Empress Industrial Estate, Wigan.