Supermarket giant Sainsbury’s announced it has bought Bradford & Bingley’s former headquarters in a multi-million pound deal.

The company is to put in a planning application to Bradford Council for a 40,000 sq ft food store on the site before the end of the year, a Sainsbury’s spokesman confirmed yesterday.

The move is expected to create hundreds of jobs.

Jo Try, Sainsbury’s regional development executive, said: “We are delighted to agree a deal with Bradford & Bingley for this site, which we believe is an ideal location for a new town centre food store.

“We look forward to working with Bradford Council and the local community to help create a valuable addition to Bingley’s retail offer, as well as a large number of new jobs.”

It will put an end to months of speculation about the future of the famous former headquarters, once dubbed a ‘carbuncle’ by Prince Charles.

The imposing building in Main Street, has been empty since the end of last year when 400 staff were transferred to Crossflatts. It was valued at £4 million.

Commercial property company Litton Properties introduced Sainsbury’s to the site after it was put up for sale in August following the nationalisation of B&B in September, 2008.

The sale has been welcomed by politicians and business leaders.

Shipley MP Philip Davies, whose constituency includes Bingley, said: “This is fantastic news. There was always a danger that the building could just be left to go to rack and ruin so the fact that someone has bought it is, in itself, positive.”

He said a supermarket in the town was ‘far more preferable’ than an out-of-town store. Tesco is seeking permission to build at the former Auction Mart, on the edge of Bingley.

Mr Davies said: “Without Sainsbury’s moving in, the discussions with Tesco have been finely balanced. Now they have bought the B&B headquarters, I think it will be difficult for anyone to think that a supermarket on the edge would be better than in the town centre.”

Councillor David Heseltine (Con, Bingley), said: “It is within the town centre, so traffic will have to be managed but it is going to bring foot fall to Bingley.

“It is a significant investment in the town centre.”

Jean-Pierre Permutt, of London and Sterling on behalf of Bradford & Bingley, said: “As a major employer in the region, Bradford & Bingley were keen to ensure that any sale of the site would result in the creation of significant new jobs and moreover ensure the continued prosperity for the town centre.

“The sale to Sainsbury’s is considered to be a very good outcome.”