Moray’s MSP has branded the short length of notice given to businesses to vacate Elgin’s St Giles Shopping Centre as “unacceptable”.
Richard Lochhead says he met Tom Arthur yesterday, the Scottish Government’s Minister for Employment and Investment, to discuss the centre’s closure plus the need for pubic agencies to support the businesses to remain in Elgin.
St Giles Shopping Centre in Elgin. (Inset) Richard Lochhead, Moray’s MSP.
St Giles’ tenants, which include WH Smiths, Waterstones and the whisky specialists Gordon & MacPhail, each received a letter on January 8, informing them it would be closing just 12 days later on Monday, January 20.
Mr Lochhead said: “Following a meeting held in Elgin this week with key stakeholders to discuss the imminent closure of the St Giles Shopping Centre, I secured an urgent meeting with the Scottish Government’s Employment and Investment Minister to update him on this most unfortunate situation.
“My thoughts are very much with the local staff and businesses who are affected by the closure of the centre and the unacceptably short notice period given by the owner.
“The Minister has agreed to visit Elgin in the coming weeks to meet the business community to discuss what lessons can be learned from this saga. I also asked for advice on sources of support that could potentially be offered to help businesses remain in Elgin and will provide a response as soon as possible.
“In the meantime, it is important that local partners continue to work together to retain many of the affected businesses and jobs in the town centre.”
Moray Council has been taking legal action to retrieve £750,000 in unpaid non-domestic rates from the owners of the St Giles Centre.
Last week a spokesperson for Upland Developments, which runs St Giles Shopping Centre Holdings Ltd, 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.”
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.”