Folk rock band The Levellers have withdrawn multimillion pound plans to renovate their studio and convert part of the building into luxury flats.
The Brighton band said only that "concerns" had emerged which they wanted to look at in more detail.
Proposals, which were submitted to Brighton and Hove City Council in February, involved transforming the upper floors of the Metway recording studios in Canning Street, Kemp Town, into eight one and two-bedroom flats.
The studios would have been refurbished and offices and studios created in the basement.
Drummer Charlie Heather said: "This is an important development for us and were very keen to come up with just the right scheme."
Wendy Pica, who runs her jewellery company Pica Designs from The Metway, said:
"If the plans had gone ahead, I would have lost my workshop, so it is quite good news."
Charlotte High, 40, of neighbouring Hendon Street, said: "We were worried if we objected too much The Levellers might sell to developers who would change it completely, so we are stuck between a rock and a hard place."
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