A 54-year-old man who was arrested on suspicion of the murder of businessman Ian Dollery in St Annes has been released without charge.
A 47 year old man who was also arrested on suspicion of murder remains in a secure unit pending a mental health assessment, police said this afternoon.
Police were called to the scene shortly after 11.30pm on Thursday following reports that a man had been assaulted outside his home in York Road.
Officers attended and found Mr Dollery, aged 51, in an alleyway at the rear of the address suffering from stab wounds.
He was taken by ambulance to Blackpool Victoria Hospital where he was pronounced deceased.
A post mortem examination showed the cause of death was multiple stab wounds. A knife believed to be the murder weapon has been recovered.
Police were today continuing door to door enquiries in the area.
The man leading the investigation, Detective Chief Inspector Jonathan Holmes, of the Force Major Investigation Team, said:
“Our enquiries are on-going and Mr Dollery’s family are being supported by specially trained officers.”
Mr Dollery’s family were said to be too upset to comment on his tragic death.
A neighbour said: “It’s hard to take in. We are still numb to be honest.”