A DEAL needed to kickstart Southend United’s stadium move has reached stalemate.
Sainsbury’s has been negotiating for three years to buy Prospects College’s site in Fairfax Drive to allow it access to Roots Hall where it wants to build a new supermarket.
Yesterday, the college said it was keeping Sainsbury’s non-refundable deposit after failing to complete the deal on time again.
It would not reveal what the deposit was. However, it is believed to be six-figures.
This is the sixth time the deal has faltered and an adamant Neil Bates, chief executive of college, said the potential agreement had been “terminated”.
He added: “There is only so many times you can agree terms with someone.”
The site is critical to the Roots Hall development as it will trigger the club’s move to Fossetts Farm. And there is no other viable access to the planned new supermarket car park and entrance.
Mr Bates said: “Sainsbury’s stepped in last July when Prospects said it was no longer prepared to deal with Roots Hall as the purchaser.
“Terms were quickly agreed and contracts were exchanged, secured by a substantial non-refundable deposit.”
Sainsbury’s was given a further 12 months to complete but the deadline passed last Friday.
Mr Bates, who says he fears for the future of the football club and its fans, added: “I think we have finally come to the end of the road with this. We have done everything we possibly can.”
The college has already vacated the property. Its directors, who had hoped to release capital from the sale for the college trust, will now have talks about how to proceed and may seek another buyer.
The supermarket giant and Southend United are working together on the stadium plans, but they are unlikely to go ahead until the Roots Hall development is under way. This, in turn, is unlikely until Sainsbury’s has acquired access to the site resulting in a stalemate between all the parties involved.
The sale of Roots Hall to Sainsbury’s is needed to finance the new 22,000-seater stadium at Fossetts Farm, off Eastern Avenue.
No one was available for comment at Southend United or Sainsbury’s.
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