Published: 02/09/2010 07:52 -
Updated: 02/09/2010 07:58
THE future of scores of shops and businesses in Harlow town centre has been thrown into doubt after the company which owns around 90 per cent of the retail space went into administration.
And in a second blow for the much-vaunted regeneration plans, the Star understands that Harlow Renaissance – the organisation tasked with spearheading the town’s redevelopment – is likely to be wound up at the end of the financial year.
And in a second blow for the much-vaunted regeneration plans, the Star understands that Harlow Renaissance – the organisation tasked with spearheading the town’s redevelopment – is likely to be wound up at the end of the financial year.
Administrators took control of Sapphire Retail Fund – owners of the Harvey Centre and shop units in West Gate, East Gate, Little Walk, East Walk, West Walk and parts of Broad Walk – after the company failed to refinance the multi-million pound debt used to acquire its sizeable property portfolio.
The Reuben brothers and Lloyds Banking Group each had a 50 per cent stake in the fund, which also owned shopping centres in Cardiff and Burnley.
Although the shops affected will continue to trade normally, their long-term future will depend on how administrators Grant Thornton proceed in order to achieve the best outcome for creditors.
It is a decision which could also have huge ramifications for the proposed redevelopment of the town centre, which already hangs in the balance after development firm Stock-land pulled the plug on its involvement with the ambitious project earlier this year.
Harlow Council leader Andrew Johnson described the news as “disappointing” but insisted the town remained an attractive proposition for potential inve-stors.
“Clearly this is a very disappointing development and the council is trying to find out what the administrator will be seeking to do,” he said. “What we can say is that Harlow has been viewed very positively by potential investors identifying the town as a key place for investment.
“We will continue to work with whomever the new owner of the Harvey Centre will be to seek to ensure that both the centre and the rest of the town centre are regenerated as well as safeguard and promote the interests of Harlow.”
But local businessman Mo Ghadami, who owns a number of properties in the town centre, warned the knock-on effects could be devastating and utimately kill off regeneration plans once and for all.
“This is a disaster for Harlow,” he said. “The whole town centre is effectively bankrupt.
“With administrators now calling the shots it is a very uncertain time for the shops and businesses affected. They will have no idea what the future holds for them.”
Mr Ghadami, who has been locked in a long-running battle with the council over planning issues, added: “I think it’s very unlikely that a buyer will be found. There aren’t many town centres in England that have gone into administration and a debt-ridden shopping centre is hardly an attractive proposition for investors.
“This will also mean the end for Harlow Council’s ridiculous plan to redevelop the town centre.”
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