The owners of St Giles Shopping Centre have blamed its imminent closure on falling rental income plus the support shown by Moray Council for shopping outside Elgin’s town centre.
A spokesperson for Upland Developments, which runs St Giles Shopping Centre Holdings Ltd, also confirmed that the shopping centre will close on Monday, January 20.
St Giles Shopping Centre in Elgin. Picture: Daniel Forsyth
The spokesperson said: “The company has faced severe financial challenges in recent years, with a high level of vacant units, reducing rent roll and increasing service charge costs.
“When the company acquired the centre, it had a strong rental income from a wide range of tenants, but this has deteriorated significantly due to Class 1 retail being introduced at the Elgin retail parks and the general demise of the retail industry.
“In 2012 the company incurred significant legal fees taking Moray Council to the High Court to try to stop them agreeing to sub-divide the bulky goods units at the business parks into smaller units, and giving them Class 1 retail consent.
“The company failed in this court action, and this resulted in the loss of many of the centre tenants.”
The shopping centre’s tenants – which include Argos, Ashers Bakery, EE, Ramsdens, Subway, Vodafone, Waterstones and WH Smith – have been told to vacate the site by January 20.
The spokesperson added: “Moray Council, who are a creditor in relation to unpaid business rates for vacant units, have commenced enforcement action and served arrestment of rent sums to all tenants asking these to be paid directly to the council.
“As a result of this the company can no longer service the operational costs of the centre.
“The company is disappointed at the closure at the centre, however after taking professional advice this difficult decision was the only option available.
“St Giles Shopping Centre Holdings Ltd is a standalone entity and the other business interests of the owner are unaffected by this decision.”
Councillor Marc Macrae, Chair of Moray Council’s economic development committee, said: “This is very disappointing news, given efforts over considerable time to try and assist the centre through difficult times.
“Thoughts are with the many staff of the centre and the retailers who have had this news sprung upon them so soon after the festive holidays.
“I can assure you that both councillors and council officers will work with all relevant organisations to assist wherever possible.”
A Moray Council spokesperson added: “We appreciate this is sad and unsettling news for people employed at the St Giles Shopping Centre.
“We currently have one vacant property on Elgin High Street available to traders, who are welcome to find out if it’s suitable for them.
“There are also a number of organisations available locally, including Elgin BID and Skills Development Scotland, to assist with relocation or other employment opportunities should businesses need it.
“Meantime, the council will work with partners to examine options and consider what it can do to assist, balancing the various duties it holds in the situation.”