Central Business Centres (CBC), which is part of the Cortis Group, has frozen a LIDL bank guarantee over a dispute related to its new Żebbuġ supermarket.

Lidl had built its supermarket on the site of the former Cortis timber factory after signing an emphyteutical deed with CBC. It opened the supermarket, its 11th Maltese outlet, in April this year.

However, in a company announcement, CBC said that differences have arisen “over LIDL’s failure to deliver part of the Żebbuġ site to CBC” as per the conditions of the deed.

“The Company regrets to note that repeated attempts to resolve these differences have failed, and that the Company is therefore registering a dispute against LIDL,” it said.

“To protect its position, the Company has claimed on the Works Bank Guarantee provided by LIDL in terms of the Deed, and will hold such funds as collateral to finance the continuation of the works that LIDL failed to carry out, or that failed to meet the required standards, and to make good for the damages that were and are still being suffered by the Company.”