The Christmas attraction organised by the 5th Rugby (Newbold) Scouts had to leave Blooms garden centre in 2015 but found a home at Cawston Christmas Trees.
But The Furniture Gallery, which is on the same site as the Christmas tree farm, is closing and the Scouts are homeless once again.
Scout leader Tony Marsella said: “We had 1,400 children through the doors last year, raising around £7,000 for the three groups that run it, which is quite a lot of money for the youngsters.
“We were building more permanent structures and the old owners were brilliant, it’s just a shame we can’t stay there.”
An appeal to find them a new home on Facebook has been shared more than 50 times, with many suggestions for where they could go, some more appropriate than others.
“We’re open to all ideas; one lady offered her back garden but I don’t think the neighbours would want to put up with the parking problems,” Tony said.
The grotto has come through some testing times recently.
It was based at Blooms on Straight Mile until it was taken over by Wyevale Garden Centre two years ago, who decided to hire another company to run it.
The Scouts were saved by the Christmas tree farm on Coventry Road in time for the 2015 festivities, and they enjoyed two great years there.
But due to planning issues, the furniture store is closing, meaning Santa Claus has to find a new home again, but Tony is optimistic.
“It takes time to build up a reputation and we have got a good reputation and the feedback has been brilliant with many returning customers but we are hoping to get somewhere new,” he said.
“But we’re going to talk to everyone who’s offered on that post and see what we can do and hopefully we will get something sorted out.”
Anyone who wants to help or find out more, email Tony on firstname.lastname@example.org.