A deal for troubled Tesco to buy council land to build a new supermarket in Huddersfield town centre is legally binding, Kirklees says.
Tesco shares fell by 8% today and it announced its chairman Sir Richard Broadbent will be leaving – adding further woe to the retail giant.
It raises questions about the future of Tesco’s plans for Huddersfield.
The store entered into a deal with Kirklees Council to buy the land at Southgate, the site of the current sports centre.
Tesco have plans to open a new store on the site, but Kirklees leader Clr David Sheard said earlier this month he suspects they may now want a smaller store.
Paul Kemp, Assistant Director for Place at Kirklees Council, said: “The council and Tesco have entered into a binding legal agreement for the sale of the authority’s land at Southgate to the retailer.
“Officers and representatives of Tesco’s property team continue to meet on a regular basis in order to review progress.
“Clearly Tesco’s recent financial issues are the subject of intense media speculation but at this point in time there is no evidence to suggest that they intend to defer or withdraw from the proposed development of the Southgate site.”
The Examiner asked Tesco to comment about their plans for Huddersfield on October 2 but they are yet to respond.
