Developer Rushbond Group recently bought the city centre building, Crispin House, from administrators and now plans to redevelop it into flats with ground floor shops.
The former textile factory was set to become a hotel but the company behind those plans collapsed.
Jonathan Maud, managing director of Rushbond, said: “Even though previous developers have already done a lot of structural work and some internal work on the building there’s still a lot to do so we were keen to start work as soon as possible and we expect the first apartments to be ready in May 2012.”