MYSTERY surrounds the future of a former pub after plans to transform it into a Morrisons M Local store were dropped.

As previously reported by The Gazette, supermarket chain Morrisons were granted planning permission and a premises licence to transform the former Hammer and Tongs pub, in Old Worting Road, South Ham.

Basingstoke and Deane Borough Council’s licensing sub-committee approved a premises licence so the company could sell alcohol at the shop from 6am to 11am, and open the store between 6am and midnight, seven days a week.

But now the supermarket giant has dropped its plans for the new shop after reviewing all of its new store opportunities.

The move follows a disappointing drop in its profits during 2014 which was down by 52 per cent to £345million – the supermarket chain’s worst announcement in eight years.

A Morrisons spokesman said: “As a business we continuously review new store opportunities against various criteria. Unfortunately the proposed South Ham M Local no longer fulfils our new store requirements and we have taken the difficult decision to end our involvement.

“We understand this is disappointing for shoppers and would like to thank the community for their support.”

When The Gazette contacted developer Questmap, which owns the site, chief executive Peter Harding said that the supermarket chain was still contractually obliged to the development and further discussions would need to take place to see what will happen to the site.