Wellington retailer Kirkcaldie and Stains says a conditional sale has fallen through.
It says the sale of the Harbour City Centre site was conditional on due diligence by last Friday.
The listed firm says the purchaser gave no formal reason why it pulled out, but the high-end retailer believes while happy with the main building, the purchaser thought the rear development site didn't fit with its plans.
Kirkcaldie and Stains says it is reviewing its options for the site.