Norcros may seek compensation

Norcros said this morning it may seek compensation from Bradford-based Morrisons after it decided not to go ahead with the deal to buy land in Stoke-on-Trent.

Norcros, which is based in Wilmslow, Cheshire, said the conditional contract to sell part of its surplus freehold land to Optimisation Developments, a subsidiary of Morrisons, is the subject of a dispute between the two parties and is unlikely to proceed.

It said: “As announced in August 2011, the conditional contract to sell this surplus land for gross cash proceeds of £8.25m was dependent on obtaining acceptable planning consent for the site.

“The group estimated the land required certain infrastructure developments amounting to approximately £5.65m thereby generating expected net proceeds of £2.6m on the disposal.”

“Planning consent was obtained on the Highgate site, Tunstall last May for a 71,000 sq ft foodstore for Morrisons and associated non-food retail units.

“However, a dispute as to whether this constitutes an acceptable planning consent has not been resolved, and more recently Morrisons have been refusing to proceed in line with the contract.

“The board and its legal advisers believe the planning consent to be acceptable, and is considering its next actions regarding the contract, including seeking compensation from Morrisons.”