Elgin’s only shopping centre is in danger of closing as it emerges that bosses owe Moray Council hundreds of thousands of pounds.
The local authority is taking legal action to retrieve a huge sum in unpaid non-domestic rates from the owners of the St Giles Centre.
The figure is thought to be in the region of £750,000, stretching back over several years.
‘Devastating blow’
A spokesperson for the council said it had “exhausted all reasonable avenues of support” and it was their duty to retrieve the “significant sum of arrears”.
Owners St Giles Centre Holdings Ltd has been approached for comment.
Closure of the mall could result in job losses and would be a huge blow to the town centre.
Councillors discussed retrieving the money in October at a meeting held behind closed doors, voting to pursue the massive debt.
The centre is currently home to Argos, Waterstones, WH Smith, EE, Vodafone, Ramsdens, Subway and Ashers Bakery.
Whisky specialists Gordon and MacPhail is renting a unit there until renovations on their South Street building are complete.
And Elgin bus station is located at the back of the building.
However there are several empty units in the two-storey St Giles Centre.
These include ones that were occupied by Monsoon, Mountain Warehouse and Superdrug.
How long has St Giles Centre been dodging rates payments?
Chairman of the council’s economic development and infrastructure committee Marc Macrae said the authority had been working for years to try and resolve the problem.
The Conservative councillor for Fochabers Lhanbryde said: “It must be frustrating for other businesses that are paying their non-domestic rates to know that a fairly large one is not paying theirs.
“This has been going on over for a number of years, and the council has been working with the centre so payments were affordable to them.”
He added: “But this is significant arrears and the council has a duty to be equitable
“It’s a very difficult thing for many businesses. And the council will provide help and support to any business that is in arrears.
“The council collects non-domestic rates on behalf of the Scottish Government, so we’re not benefiting ourselves.”
‘Closure of St Giles Centre would be a devastating blow’
While businesses need to pay their rates, SNP councillor for Elgin North Jérémie Fernandes felt the decision to chase payment in the busy pre-Christmas period was “disappointing”.
He said: “What it means for the St Giles Centre remains to be seen, and I will be keeping a close eye on what happens next.
“A closure of St Giles Centre, with potential job losses, would be a devastating blow for Elgin, particularly at a time when investment is finally coming to the town centre.”
What do you think the future holds for the St Giles Centre? Let us know in our comments section below
Labour councillor for Elgin South John Divers said the council had a legal duty to recover the debt.
He added: “This is not a good position to be in, and I think a lot of people will have difficulty with this.
“What effect will it have on the town centre? That is the question that will need to be dealt with.”
This week will see the 33rd anniversary of the shopping centre officially opening.
But there were no tenants in it when that took place on 15 November 1991, and it was labelled a white elephant.
‘We have exhausted all reasonable avenues’
A Moray Council spokesperson said: “The council has exhausted all reasonable avenues of support in its responsibilities to recover non-domestic rates (NDR) from this company.
“A number of temporary solutions were put in place to assist with the impacts of the pandemic. Assistance that was offered and available to any business in these circumstances at the time.”
They concluded: “However, the significant sum of arrears must be pursued given our duties as a NDR levying authority including those to other NDR payers.
“We appreciate the financial position of the building owner and landlord creates uncertainty regarding the centre and remain committed to supporting businesses to continue to trade in a suitable location locally.”
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