New twist over £60m Wolverhampton Tesco store saga
Tesco is reviewing all its plans for new supermarkets, creating a new setback in the long awaited £60 million store planned for Wolverhampton.
City MP Pat McFadden revealed he had received a phone call from Robin Terrell, interim boss of the supermarket chain, to break the news.
Mr Terrell was appointed after senior executives were suspended following a shock drop in profits caused by a major understatement.
Tesco had repeatedly committed itself to developing the new store at the Royal Hospital, creating hundreds of jobs and regenerating the All Saints area.
One city councillor has said the company is treating residents 'with contempt'.
The company has owned the site for 13 years and spent a decade in a bitter legal war with Sainsbury's over the right to build on land in Raglan Street, Chapel Ash.
The row was eventually settled in 2011 when both stores were given permission.
But while Sainsbury's has now opened, Tesco has only so far carried out conservation work on the former hospital.
Mr Terrell informed Wolverhampton South East Labour MP Mr McFadden that the chain's whole capital programme was under review.
He stressed in the call that the Wolverhampton project was not being killed off.
Previously Tesco has repeatedly said its building work would begin in 2015 but a review pushes the start back even further.
Mr McFadden said: "Another review is deeply frustrating for my constituents and indeed for the city.
"This is particularly true given promises made earlier this year by the chief executive of Tesco's UK business.
"I very much hope this review results in the investment going ahead because All Saints needs the regeneration, needs the new development and needs the jobs that it will bring."
In October Tesco's shares hit an 11-year low after a £263 million hole was found in its profits, and the Serious Fraud Office has launched an investigation into accounting practices.
Councillor Bishan Dass, who is the city councillor representing All Saints, said: "This issue is going on and on and there seems to be no light at the end of the tunnel. Tesco have their problems but that is not the fault of the people of All Saints. I think Tesco are treating the people here with contempt and it is elected members here in Wolverhampton who are having to answer the questions that Tesco should be answering."