Bitter blow for Croydon as Nestlé decamps to Crawley

Croydon faced a major blow to its prestige today as confectionery giant Nestlé confirmed plans to move its UK headquarters out of the town after nearly 50 years.

Nestlé - which employs more than 800 staff in Croydon - plans to ditch its ageing St George's House base in Park Lane in favour of a new home in Crawley near Gatwick airport.

Signs at East Croydon station flag up the town as the "home of Nestlé", but the company has been eyeing a move for a number of years as its lease expires in 2014. The move to Crawley will be completed by the end of the year.

The decision comes despite a desperate fight to keep the company in Croydon by the local council, working on local alternatives and even offering to buy St George's House.

Council leader Mike Fisher said the news was "very disappointing", but added that Croydon could not match the draw of Crawley's proximity to Gatwick. He said: "We have done everything we possibly could to avoid this outcome, but ultimately we have to respect the fact that Nestlé are a footloose global company and can choose where they locate their business."

Croydon has managed to attract other major occupiers, including HM Revenue and Customs and insurer Zurich. But Nestlé's decision is a blow to other local developments hoping to land the food giant as a potential tenant, such as Stanhope and Schroders' Ruskin Square. Other long-running regeneration efforts in Croydon include Minerva's Park Place shopping scheme, which foundered due to a lack of finance.

The maker of Kit-Kats, Quality Street and Shredded Wheat is moving its 840 staff to 1 City Place, taking up offices formerly occupied by BT on a 20-year lease.