Elgin shopping centre facing closure over 'significant' rates arrears

Elgin’s only shopping centre is in danger of closing due to thousands of pounds of arrears owed to Moray Council.

The local authority said it is taking legal action to retrieve hundreds of thousands of pounds 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.

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”.

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.

A motion to delay pursuing the debt until after Christmas was defeated by 15 votes to five. There was one abstention.

The centre is currently home to Argos, Waterstones, WH Smith, EE, Vodafone, Ramsdens, Subway and Ashers Bakery.

Whisky specialists Gordon and MacPhail are temporarily renting a unit there until the renovation of their building on South Street is finished.

Elgin bus station is located at the back of the building.

However, several empty units are in the two-storey St Giles Centre, including ones that were occupied by Monsoon, Mountain Warehouse, and Superdrug.

Chairman of the council’s economic development and infrastructure committee, Marc Macrae, said the authority had been working for years to 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.

“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.”

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.”

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.

“And what impact will it have on the store owners in the St Giles Centre?

“But at the end of the day the council has to recover the money.”

This week, the 33rd anniversary of the shopping centre’s official opening will be celebrated.

However, when that took place on 15 November 1991, there were no tenants in it, and it was labelled a white elephant.

Robertson Property and Upland Investment were granted planning permission to extend the centre in October 2013.

The proposals would have more than doubled the size of the mall but never came to fruition.

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.

“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.”

Owners St Giles Centre Holdings Ltd has been approached for comment.