Retailers at Elgin’s St Giles Shopping Centre are contemplating legal action following the sudden announcement of the centre’s closure, which has given them just two weeks to vacate their premises.
The shopping centre’s owner, St Giles Shopping Centre Holdings Ltd, informed tenants on January 8th that it would permanently close on January 20th, 2025, due to severe financial challenges.
This short notice period has left many businesses scrambling to find alternative locations and questioning the legality of such an abrupt eviction.
It is understood about 100 jobs are on the line as local independent retailers and national chains seek to find alternative premises.
Lee Midlane, who runs Box Brand in the centre, expressed his concerns about the limited timeframe: “Two weeks notice is no time at all, it can take months to find a new premises and move in.”
This sentiment is echoed by many other retailers who feel blindsided by the sudden closure announcement. The closure comes after years of declining occupancy and a dispute with Moray Council over unpaid business rates, estimated to be between £600,000 and £750,000.
The centre’s owners have cited a “high level of vacant units, reducing rent roll and increasing service charge costs” as reasons for the closure.
Sarah Medcraf, Chief Executive of Moray Chamber of Commerce, acknowledged the shock and frustration felt by the affected businesses: “The news of St Giles is a shock to us all and has come at a really frustrating time, the return following Christmas.”.
She added that the Chamber is “standing ready to help support anybody who needs matching up with another empty property in Elgin or Moray.”
As retailers consider their legal options, the closure of St Giles Centre marks a significant blow to Elgin’s High Street, with the loss of numerous businesses and jobs. The short notice period has left many questioning whether sufficient consideration was given to the impact on local businesses and employees.
With the January 20th deadline looming, affected retailers are urgently seeking legal advice and exploring their options for challenging the closure timeline.
Uncertainties also persist regarding the future of Elgin bus station following the closure of the St Giles Centre. It is believed that there may be logistical challenges related to maintaining the connection of electricity supplies and fire alarms in the bus station to the shopping centre building.
Moray Council leases the bus station space from the St Giles Centre, which is in turn leased to Stagecoach. No decision has been yet been made about whether the bus station will need to be relocated after next week’s deadline.
