After the recent announcement that the Club would soon be opening a Learning Centre for the benefit of the local community and Hatters fans, it was announced with regret today that the work has been cancelled at the last minute.
The Learning Centre aimed at children, adults and businesses alike, was planning to offer courses for people to improve their skills, get back into work and to help local retailers improve and combat the recession.
On the late decision, Hatters director Stephen Browne said: "Unfortunately, recent media activity by other parties which implied that the Club is being relocated has created a huge amount of confusion and instability, to such an extent that we have now lost our entire funding.
"The public funding and grants from various authorities was firmly agreed beforehand, along with part of the funding which was going to be provided by two local companies who wanted to help the local community and they felt they could not be associated with negative and political press activity during this tough economic climate.
"I chaired a steering committee of contributors which included the Learning Skills Council, Adult Community Learning and Luton Borough Council, who have all been working on the project for 12 months.
"We were just about to sign contracts with the grant providers and a local builder when all of this disagreeable media activity started resulting in funding being lost just 72 hours before work was due to start with no hope of regaining it in the near future.
The Learning Centre at Kenilworth Stadium would have included classrooms, disabled facilities, and a fully-fitted IT suite. It would have also resulted in a doubling of the size of the Eric Morecambe Suite allowing far more supporters into the lounge on matchdays.
Stephen added: "Obviously it's not just the community that will lose out now - the supporters lose out too as the Eric Morecambe Suite has become a favourite pre-match venue on matchdays for Hatters fans, and this also means vital lost revenue to the Club."
"It was an emotional decision for us to make. Staff at the Club have spent a year pulling this together and we are all frustrated that such an exciting project which was due to open this Spring has been lost due to irresponsible outside influences who have neglected to engage with the Club in this matter.
"I cannot emphasize enough how grateful we are at the Club for the support of all those involved in the steering committee - the Borough Council, the Learning Skills Council, Adult Community Learning, and members of the local community - who have all given enormous amounts of time and knowledge freely and willingly.
"We understand the position of the private funders and we know their reasons. It is hugely disappointing that some parties continue to use the Club as a political football after everything it has been through in the past couple of years."
