The St Giles Centre in Elgin will shut in less than two weeks after the owner pulled the plug amidst crippling debts.
Letters have been sent to businesses operating inside the High Street mall telling them they need to vacate the building by close of business on Monday, January 20.
It is the culmination of several years of decline in the shopping centre following closures of stores such as Monsoon and Superdrug and Mountain Warehouse moving to the retail parks.
The situation was then pushed to crisis point in in November last year when Moray Council took legal action to retrieve a huge sum in unpaid non-domestic rates from the owners of the St Giles Centre.
That figure is thought to be in the region of £600,000 to £750,000 and is understood to have built up over several years.
How St Giles Centre closure news broke
The Press and Journal has been told confirmation of the St Giles Centre closure was only communicated to tenants by letters delivered by post.
However, due to some national chains having head offices elsewhere, it is understood some Elgin-based staff only heard the news second-hand from other retailers.
Meanwhile, tenants in the St Giles Centre told the Press and Journal they had been told to pay their rent to Moray Council’s debt collectors Scott & Co instead of the shopping centre itself as part of efforts to cover the unpaid bill.
It is understood the loss of rental income was what finally pushed the St Giles Centre owners towards closure.
The letter to retailers, signed by David Cameron, the only director of owners St Giles Shopping Centre Holdings Ltd, blamed the rising number of vacant units for the mall’s cash crisis.
He wrote: “I am writing to you in relating to your tenancy within the centre. 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.
“As a result of this, and the difficult financial position it puts the company in, we have no option but to advise that the centre will permanently close with effect from close of trading on January 20.
“We will not be reopening on January 21 and you may no longer have access to your unit from that date onwards.
“We hope that by giving you two weeks notice, it will provide you with options to enable all stock and other items of value to either be sold otherwise removed from the unit
“Thank you for your support and for your cooperation in relation to this matter.”
St Giles Centre staff react to closure
It is understood that the emergence of the large unpaid business rates bill in November came as a shock to tenants in the St Giles Centre.
Retailers the Press and Journal spoke to today explained they had received no updates since then about how the situation was likely to be resolved – until the arrival of letters in the post this week.
Lee Midlane, who runs Box Brand, said: “There was no indication this was going to happen.
“We’ll be alright because we can move back to IT Central in the meantime. We’ve liked being in the St Giles Centre though. We’d only signed a short lease but we wanted to extend it.
“It’s the other businesses I feel bad for. Two weeks notice is no time at all, it can take months to find a new premises and move in.
“I hope all the businesses do find ways to stay in Elgin, because it’s a lot of retailers to lose in one go.”
Another St Giles Centre tenant said: “It’s just awful news, especially coming so soon after Christmas.
“We really like being in the St Giles Centre, the centre staff have been so helpful to us. There’s no job too big for them, they’re always helping us carry boxes and stuff like that.
“I feel so bad for them too.”
Businesses appeared to be continuing to trade as normal in the St Giles Centre today.
Within hours of the closure being confirmed charity Moray School Bank issued an urgent appeal for help to find a new premises.
It is understood assistance is being offered to retailers eager to find alternative homes in the area.
What shops are currently in St Giles Centre?
St Giles is currently home to retail brands including Waterstones and WH Smith.
It also has Box Brand, The Works, Subway, Ramsdens and Ashers Bakery, as well as mobile phone stores.
Gordon and MacPhail also has a temporary retail shop until the whisky specialist’s building on South Street is transformed.
What now for High Street businesses?
Moray Chambers of Commerce chief executive Sarah Medcraf has revealed efforts are underway to try to help the affected businesses to relocate to other premises in Elgin.
She said: “The news of St Giles is a shock to us all and has come at a really frustrating time, the return following Christmas.
“It is disappointing news and our focus is now on working with our Moray Town Centres Task Force development manager Anna Rogers and landlords to help relocate these businesses as we don’t want see Elgin lose any of these shops.
“We want any landlords with suitable premises to come forward too.”
Any landlords with vacant Elgin premises can contact Anna on arogers@moraychamber.co.uk or 07375090654.
Moray Council has also offered to provide support, but warned they only currently have one available High Street property.
A spokesperson said: ““The council is aware there has been a closure notice issued to tenants of the St Giles Centre by its owners and we appreciate this is sad and unsettling news for people employed there.
“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.”
Urgent talks demanded on St Giles Centre future
Confirmation of the upcoming closure of the St Giles Centre has sent shockwaves through the Elgin business community.
Urgent talks have been demanded to determine whether a course can be plotted to either save the mall or if the jobs can be kept in an alternative location.
Moray MSP Richard Lochhead said: “It is unrealistic to give tenants less than two weeks’ notice of closure.
“Businesses can’t be expected to deal with the staffing and stock issues caused by closure in such a short period of time.
“It is vital that all interested parties and agencies work together to keep these big retailers in Elgin and protect jobs.”
Elgin City North councillor Jérémie Fernandes said: “There is also a significant risk that the bus station operating from the centre may need to relocate, potentially disrupting public transport access in Elgin.
“I voted against the council’s decision to pursue overdue business rates before the Christmas period, as I believed it would place undue pressure on struggling businesses at a critical time.
“Unfortunately, this decision seems to have hastened the closure of the centre.”
Efforts to save Elgin shopping centre
St Giles was previously highlighted in the Elgin town centre masterplan with plans to hold discussions to explore opportunities to give the centre new life.
This was part of the £100 million Moray Growth Deal.
UHI bosses had planned to invest up in £3million.
However they pulled out as the project lead due to inflationary pressures increasing on the project and financial pressures.
At the moment, the shape of the project is unclear.
The St Giles Centre had also caught the attention of NHS Grampian as a potential venue for a wellbeing hub in the town centre.
Read more about the St Giles Centre
- A Highland property developer, a tobacco giant and a 125-year lease: Who owns the St Giles Centre in Elgin?
- No shops, more than two years late and a bankrupt developer: The saga of how the St Giles Centre in Elgin finally opened
- Retail park rows, supermarket deals and a massive bus station makeover: The St Giles Centre expansion plans in Elgin that never happened
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