Poundland's £1 rent deal in Nuneaton 'drastic' say retailers

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A council has been criticised for offering Poundland a bargain priced rent deal of just £1-a-year



The firm wanted to move out of Nuneaton in Warwickshire after taking over the former 99p Stores unit because it already has two branches in the town.

But fearing another empty shop, the council said it offered the £1 deal for two years, which the firm accepted.

Retailers have questioned the "drastic action" by the council as some stores struggle to cover their costs.

People commenting on social media said the chain should pay more and were worried about the effect on other stores in the town, which already has several empty units, while others welcomed the news.

Lisa Zaturowski, director and owner of Caves, a fruit and vegetable shop on Queens Road, said she was shocked and added that she had previously asked Nuneaton and Bedworth Borough Council to reduce her "high" business rates.

"I can't believe it. We pay about £2,660 a month [in business rates] and we're struggling to be honest.

"We own the building so there's no rent, but we can't afford it which is not good for the town.

"I mean, good for Poundland if they can get it...business is business at the end of the day, but they should reduce them for everybody, not just Poundland."

James Eaton, manager of Age UK, also on the same road, said he had mixed reactions.

"Having a large chain in the town means bigger footfall for all and we all benefit. Alternatively, giving a retailer of that size that type of deal, what advantage does that give?

"On balance, there are a lot of empty shops in this town and I grew up here and lots of things have come and gone and it's a very large space that I'm sure the council didn't want empty.

"I don't know what happened in that meeting but it's certainly drastic action by the council."

A council spokesman said: "If this agreement had not been secured, the council would have been faced with an unoccupied property which would have been unavailable to another tenant whilst the lengthy administration process was being progressed."

It makes you wonder, have there been any similar so-called 'sweetheart deals" in Coventry?

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I'll bet there have been.

But now this has leaked out, it makes renegotiation leases rather problematical for the council doesn't it?

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Poundland's ONE pound rent deal costs council almost half a million



Almost half a million pound in council savings has been forked out so that Poundland can continue to pay a controversial £1 rent on a shop in Nuneaton town centre.

For another year, Nuneaton and Bedworth Borough Council has had to use £217,000 of its reserves to make up for the £1 rent deal it struck with the national chain to use its building in Queens Road.

This is added to the £248,950 already spent on the agreement to keep the store in the shop.

Councillor Kris Wilson , leader of the opposing Tories at the Town Hall , shone a light on the controversial situation and asked what the council was doing to bring in a new, full rent-paying tenant.

“I appreciate that there are reasons behind it (the £1 rent deal), but moving forward, as we are sustaining it using reserves, I think we need to have more information on how we are going to deal with this issue because we can’t continue to fund it from reserves,” Cllr Wilson said.

“I think we need more updates for members, particularly on how we are marketing the site and how we are trying to find alternative tenants for the site because it is a key piece of real estate within the borough, which has significant financial implications.”

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Council's notorious £1 rent deal for Poundland set to continue

Nuneaton and Bedworth Borough Council's notorious £1 rent deal for Poundland is set to continue - as no new tenant can be found for the store.

The council looks set to lose £75,000 in rent for 22 Queens Road, the home of one of the town's two Poundland stores.

This is because, despite best efforts, no new tenant can be found.

Which means Poundland will continue to pay the £1 rent deal for the building, which the Town Hall spent thousands of pounds on renovating.

In a budget report it reveals: "In terms of spend pressure relating to 22 Queens Road, the council has been negotiating with a potential new tenant for this property and was anticipating income part way through the year.

"While negotiations are going well it is now likely that the council will need to offer a longer rent-free period than initially thought in line with the current market standard for this type of commercial property lease."

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Something smells rather high here

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Poundland confirms it is closing Nuneaton shop



Poundland has confirmed the closure of one if its stores in Nuneaton.

The national firm confirmed to CoventryLive that it will be moving out of the store in Queens Road, the former home to TJ Hughes and Woolworths.

It will focus all its attention on the Market Place based branch in the town instead.

Speculation has been rife about who will move into the building, which is owned by Nuneaton and Bedworth Borough Council.

Wilkos needs to find a new home as its current location in Church Street forms part of the land Warwickshire County Council plans to use for the new £19m library, but other businesses could be in the running. CoventryLive has contacted Wilkos for a comment.

What is known is that the decison by Poundland to leave the Queens Road-based building finally brings to an end the controversial £1 council rent deal.

While it is unclear who will be moving into the groundfloor of 22 Queens Road, it was revealed that the empty space above the former Woolsworth store iis going to be transformed into office and business start-up accommodation.

That floor had originally been used when TJ Hughes was located in the Nuneaton and Bedworth Borough Council owned building - but the first floor has been left empty since the firm moved out in August 2011.

As we reported in our newsletter, the town centre is one of more than 100 across England to be given Towns Fund cash from the government - and it will receive the top £1m windfall.

This will be spent on ensuring the first floor can become a new home for offices, which could create dozens of new jobs.

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New tenant still being sought for old Woolworths store in Nuneaton



Council bosses say they hope to unveil the new tenant for the former Woolworths store in Nuneaton town centre later this year.

The former Woolies store, which also played home to Poundland and TJ Hughes, has been empty since the end of October.

Nuneaton and Bedworth Borough Council, which owns the building, has told CoventryLive that they hope to reveal a new tenant soon.

"Discussions are continuing with retailers who might be interested in letting that shop unit and we hope to make an announcement about that later this year," said council leader, councillor Julie Jackson.

Wilkinsons is the front-runner to become the new tenant.

The national firm has to move out of its current home in Church Street to pave the way for a new almost £20m library and offices.

Wilkinsons bosses have previously pledged that they want to remain in the town centre and will be looking to relocate - but have yet to reveal where.

The Town Hall has previously said that it was 'in discussion' with the retailer to ensure it could stay in the town - and the former Woolies building appears to be a perfect fit.

Woolworths was famed for being in the building before closing its doors for good in 2010.

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Work starts on business hub above former Poundland



Work to transform the upstairs of a former Poundland in Nuneaton into a hub for new businesses has begun.

The renovation of the first floor of 22 Queens Road - owned by Nuneaton and Bedworth Borough Council - will cost £1 million.

It is hoped the space will allow new, small businesses to flourish in the town.

The floor has stood empty since TJ Hughes left the town centre building in August 2011.

Nuneaton and Bedworth Borough Council leader, councillor Julie Jackson said: "Work has started on the unit. Asbestos removal has been completed and further work to prepare the office accommodation on the first floor and the shop unit on the ground floor is due for completion by the end of March this year."

As we reported in our newsletter, the town centre is one of more than 100 across England to be given Towns Fund cash from the government - and it received the top £1m windfall.