The impending closure of St Giles Centre highlights the challenges facing retail in Elgin.
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The St Giles Centre in Elgin is set to close its doors permanently on January 20, following years of financial struggles and a significant decline in retail activity. The decision to shut down the shopping centre comes after the owner, St Giles Shopping Centre Holdings Ltd, faced crippling debts, including a staggering unpaid non-domestic rates bill estimated between £600,000 and £750,000.
This financial burden has been accumulating over several years, ultimately leading to the centre’s demise.
Impact on local businesses
Letters notifying tenants of the closure were sent out, but the communication has been criticized for its lack of clarity.
Many retailers, particularly those with head offices outside Elgin, learned about the closure through second-hand information. This has raised concerns about the support and guidance available to businesses during this transition period. The St Giles Centre has been home to various retailers, including Waterstones, WH Smith, and several local brands, all of which will now need to find new premises.
Reasons behind the decline
The decline of the St Giles Centre can be attributed to several factors, including the increasing number of vacant units and rising service charge costs. David Cameron, the director of the owning company, cited these issues in his letter to tenants, stating that the high level of vacancies has severely impacted the centre’s financial viability. The situation was exacerbated when Moray Council took legal action to recover unpaid rates, pushing the owners to make the difficult decision to close.
Future prospects for affected retailers
In light of the closure, efforts are underway to assist affected businesses in relocating. Sarah Medcraf, chief executive of Moray Chambers of Commerce, emphasized the importance of retaining these shops in Elgin. Collaborations with the Moray Town Centres Task Force are being established to facilitate the relocation process. Landlords with available premises are encouraged to come forward to help mitigate the impact of the closure on the local economy.
Community response and potential redevelopment
The St Giles Centre’s closure has sparked discussions about the future of retail in Elgin. Previously, the centre was included in the Elgin town centre masterplan, which aimed to revitalize the area and explore new opportunities for development. There were even plans for the centre to host the proposed UHI Moray Aerospace, Advanced Technology and Innovation Campus, although those plans fell through due to financial pressures. The community is now left to ponder what the future holds for this once-thriving retail hub.
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