Supermarket giant Asda decided to quit Telford Shopping Centre after being thwarted in an 18-month battle to expand its store, it was revealed today.

Bosses had planned to extend their existing store at the shopping centre as part of Hark Apollo’s The Round development but they are now in the process of buying the Civic Offices.

Asda today revealed for the first time how a breakdown in talks with the centre owners had forced them to switch their bid to the council’s civic centre headquarters site nearby.

Its fight against the introduction of parking charges at the centre by the complex’s previous owners six years ago and price increases since is also believed to have been a major factor.

Asda bosses launched a petition three years ago as part of a campaign to get the parking charges lowered, claiming they were responsible for a drop in trade.

Chris Marlow, Asda property communications manager, has revealed the key reason for the move in a letter to senior Telford & Wrekin Council members.

He said: “The lease at our store expires in 2014. Discussions have been held with our landlords, Hark Apollo, over an 18-month period in relation to redeveloping the existing Asda store to provide an extension to the shopping centre, known as The Round.

“Following those discussions, it was apparent that . . . satisfactory arrangements could not be agreed. In the current economic climate, retailers like Asda must consider all of the opportunities available to both create new and secure existing jobs.”

Mr Marlow said the regeneration of the Civic Offices presented Asda with such an opportunity and also gave Hark Apollo enough land to develop a modern centre.

Bosses of Hark Apollo have mounted a legal challenge to the multi-million pound plan to create a town centre for the 21st century.

They have accused Telford & Wrekin Council of deterring potential investors and flying in the face of official planning policy. But council officers and members deny the allegations and insist they will be able to see off any attempt to block their proposals.

By Simon Hardy