Tesco has dropped its interest in buying the former headquarters of Bradford & Bingley.

A team of architects working on behalf of the retailer looked into acquiring the £4 million site with a view to building a store there.

However, Tesco said the site would not be viable for a major food retailer to build on as it is too small.

Instead, Tesco will press ahead with its plans to build a 40,000 sq ft store on the site of Bingley’s auction mart site in Keighley Road.

Matt Magee, Tesco regional corporate affairs manager, said: “I don’t think any of the major food retailers will buy it because you will not be able to have a decent size supermarket there. You may be able to use it for something smaller but that is not what Bingley needs.”

Bradford & Bingley said the landmark building – dubbed a ‘carbuncle’ by Prince Charles – is expected to be demolished once it is sold.

Bosses at the mortgage lender have received several potential offers for the five-storey 1970s building.

However, it may be impossible for supermarket groups to make the site viable, unless Bradford Council sells part of Myrtle Park, behind the B&B building.

It is unclear whether the Council would allow such a move.

The Council is carrying out a ‘feasibility options study’, commissioned to look into what options are viable for the B&B site.

When completed, it will form part of the wider Airedale Masterplan, the spokesman said.

Meanwhile, Tesco said a new store near the town would attract shoppers into Bingley, rather than forcing them further to Shipley or Keighley.

Mr Magee said that, should the plans be approved, Tesco will run a shuttle bus for people in outlying villages to get to the centre of Bingley.