A spokesman for Sainsburys said this week: “We can confirm that we are working with Tesco to sell our collective landholdings at Ferry Road in Rye.
“We have concluded that, regrettably, it has not proved possible for either of our food store proposals to proceed on the former Thomas Peacocke School site.
“A property agent has therefore been jointly appointed by us and Tesco to sell both our land holdings as one package, thereby allowing the positive development of the site for the benefit of the Rye community.
“We recognise that this news will be disappointing for local people. However, we are now working with Tesco so that the site can come forward for a beneficial use as soon as possible.
“The joint site has been offered to selected retailers and developers in the first instance, which, subject to interest, will be followed by a wider marketing campaign. We will provide the wider community in Rye with an update on matters in due course.”
Sainsbury’s landholding comprises the former School site and the cottages at 25-29 Ferry Road. Tesco’s landholding includes 31 Ferry Road and the Queen Adelaide public house.