Noise fears put an end to chef Mark Hix's restaurant in the Tramshed

Chef Mark Hix today spoke of his bitter disappointment after he pulled out of plans to transform one of Shoreditch's most notable buildings into a restaurant.

The proposals for the Grade II listed Tramshed, built as a power station in 1905, would have seen more than £1 million spent on the building. But Hix, who owns three restaurants in London and another in Lyme Regis, Dorset, is abandoning the scheme after being told he cannot open past 11pm.

He said that a "small percentage" of residents living near the Rivington Street site who complained about possible noise meant he would have had to stop serving food at 10.30pm.

He added: "You can't run a restaurant like that. The "for sale" boards are back up and a building that has been empty for two years can remain empty for a while longer.

"The vast majority of people wanted this restaurant. Only a small percentage of local residents objected. This restaurant could have played an important part in the regeneration of an area that I care about. I lived just around the corner from the Tramshed for 10 years."

Architects describe the 1,000 square metre, three-storey Tramshed building as the remains of a network of power stations and sub-stations built by transport companies at the start of the last century. Hackney council approved planning permission in April but, when granting a licence, vetoed Hix's desire to stay open to 1am.

The chef, who opened the Hix Oyster and Chop House in Smithfield in April 2008 and once owned The Rivington in Shoreditch, said £100,000 had been spent on sound-proofing. He added: "This was a brilliant opportunity for a wonderful building. A lot of people are very saddened."

Traders backed Hix's plans saying other restaurants in the area were open past 11pm and it would have attracted more business. But one resident, Alan, an IT worker, said: "We are trying to get a balance between residential and other services."