Administrators of the Bon Accord shopping mall in Aberdeen have insisted it’s “business as usual” despite its collapse into administration.
Restructuring specialists have stepped in to run the mall and said its employees would be retained while it starts a sales process.
They said they wanted to “reassure tenants, shoppers and stakeholders that it is very much business as usual”.
Call for ‘swift’ action
A business boss said there was still “hope” for the centre but warned its collapse was a “use it or lose it” call for residents who want to support local shops.
Ryan Crighton, policy director at Aberdeen and Grampian Chamber of Commerce (AGCC), said: “Clearly, this is a concerning development. However, there is precedent with other centres in the UK trading through administration for extended periods, which offers hope.
“The Bon Accord Centre has been at the heart of Aberdeen’s retail offering for over 30 years – and that must continue. However, if people want a vibrant city centre, this should serve as a clear ‘use it or lose it’ warning.
“After years of regressive policies which have starved our high streets of footfall, we now need innovative solutions to get people back into our city centres to live, work and play
“That action needs to be swift, decisive and tangible.”
Adrian Watson, the chief executive of the cty’s business improvement district, Aberdeen Inspired, also urged people to support “bricks and mortar” businesses.
“The Bon Accord Shopping Centre has a proud history in the heart of our city and still has much potential. ”
“It is still very much open for business and we continue to encourage the north-east public to support our bricks and mortar businesses there and the wider city centre.”
He called for a “coherent strategy” to stem decline of the city centre.
“Of course, the broader challenge to our town and city centres is well documented and more than ever we in Aberdeen need that collective understanding and willingness to work together in delivering on a coherent strategy that will revitalise the heart of our city.
“We simply cannot dwell in the past but instead build for the future.”
Aberdeen city centre ‘hammer blow’
The collapse comes after a very difficult two years trading during which anchor store John Lewis failed to re-open and several chain stores either also failed or closed shop in Aberdeen.
Nevertheless the mall’s management made efforts to keep shoppers coming in with pop up shops and an indoor market for local traders.
Scottish Conservative north-east MSP Douglas Lumsden, who was part of the taskforce aimed at trying to save John Lewis last year, said: “This news is yet another hammer-blow for retail in Aberdeen city centre.
“The Bon Accord Centre has been a focal point of our city for more than 30 years and it’s extremely worrying that its owners have gone into administration.
“It’s been devastating to lose the likes of John Lewis and it’s now imperative a new owner can be found to continue the running of the Bon Accord.
“Over the years we have seen the number of outlets within the shopping centre decline and this has been exacerbated by the Covid pandemic and the crippling business rates which are being imposed on Aberdeen by the Scottish Government.
“I will now be writing to the owners and administrators seeking assurances regarding its future and foreseeable plans for the centre.”
Billionaire owner?
Sevket Sabanci, the Turkish billionaire behind Esas Holdings – majority shareholder of Turkish Airlines – is thought to have acquired both the Bon Accord and St Nicholas Centre around ten years ago.
Administrators said two Guernsey-based companies, Aberdeen Retail 1 Limited and Aberdeen Retail 2 Limited, the owners and operators of the Bon Accord shopping centre, have been placed in administration.
They added administration was caused by “unsustainable cash flow problems stemming from the ongoing impact of the Covid pandemic, rising operational costs and intense retail competition”.
Seeking buyers ‘promptly’
James Fennessey, Blair Milne, Colin Haig and Matthew Richards, partners with accountancy firm Azets, have been appointed joint administrators of both companies.
Mr Fennessey said: “The Bon Accord Shopping Centre and the St Nicholas Centre, which merged with the Bon Accord in 2020, are long-established and retail centres with a very strong brand name and awareness across the north of Scotland.
“They have consistently attracted and retained a wide range of quality retail tenants over the years, and regularly draw hundreds of thousands of visitors every year.
“The contribution of the Bon Accord to the economy of the north-east is significant and the centre is as much a social hub and focal point for the city as it is a retail centre.
“We will now quickly stabilise the trading position and wish to reassure tenants, shoppers and stakeholders that it is very much business as usual.”
They have called on “interested parties to make contact as soon as possible” and have appointed specialist commercial property agents Cushman & Wakefield to prepare sales particulars and manage the sales process.
“We are keen to try and find a buyer promptly,” they added.
About the Bon Accord
The Bon Accord Shopping Centre, which was built in 1990, extends to two main buildings on George Street and Union Street.
It features 460,000 sq ft of retail space with 72 retail units over three floors and 1400 car parking spaces in two owner-operated car parks to the north and south sides of the centre.
Additional period buildings on George Street, Upper Kirkgate, Loch Street and Gallowgate provide a further 90,000 sq ft of retail and ancillary space, 6,300 sq ft of offices, residential units, and the listed Students Union building.
The average annual footfall to the Bon Accord Shopping Centre pre-Covid was 15 million visitors.
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