Fears for future of city arcades as rent demand hits shops
FEARS are being expressed about the future of three of Cardiff’s iconic city centre shopping arcades as tenants are coming under financial pressure to pay rent for periods when they could not open their businesses during the lockdowns.
High Street Arcade opened in 1885, Castle Arcade in 1887 and Duke Street Arcade in 1902.
A number of units have already shut down including Greazy Vegan while Dark at Dusty Knuckle is in the process of closing its Castle Arcade outlet.
Popular cheese shop Madame Fromage has not reopened its Castle Arcade outlet and is currently operating from a unit elsewhere in the city.
Business owners are reluctant to be named, but one said: “Covid has been disastrous for us. The landlords are only prepared to forego three months rent and expect us to pay the rest, even for the period when the arcades were shuttered. While we received help from the UK Government, it wasn’t enough to pay for all our outgoings.
“It’s been suggested that we should borrow money to pay the landlord, but getting into further debt would just make the business even less viable for the future.”
Another business owner said: “It is very difficult to get hold of the landlords. It’s very frustrating.
“One of the most attractive features of Cardiff for local people and visitors is the arcades, which have great character partly because of the architecture, but also because of the individuality of the businesses, the great majority of which are independent.”
The arcades are owned by a London property company called Mansford, whose registered office is in Haymarket in the West End theatre district.
Accounts filed at Companies House show that the firm made a profit of £1.97m and paid corporation tax of just £24.
In January this year it was revealed that architects had drawn up a plan to bring back into use a hidden courtyard tucked away behind the Duke Street and High Street arcades.
The scheme would entail demolishing the old Emporium nightclub to create a new open courtyard area. The project would create four new spaces designed for independent bars and restaurants around a central, open courtyard.
Some of the existing business owners believe they may not figure in the new plans.
They have raised their concerns with Neil McEvoy, the leader of the Propel party, who has represented South Wales Central in the Senedd for the last five years.
In a letter to the partners of Mansford, Mr McEvoy said he had been in contact with business owners in the three arcades and said he was “shocked” at the number of units that were now empty.
He added: “Business owners tell me that you offered businesses to leave their units debt free, or pay the rent during the time they were in lockdown, with only a threemonth rent holiday.
“This is obviously an impossible financial burden for many independent traders, who have been unable to trade for many more than three months. As a self-described ‘private European multi-strategy real estate investment firm’ you may not understand how important our arcades are to the culture and unique heritage of Cardiff. The arcades set us apart from other cities and have always been a significant attraction to visitors here.”
Describing the sight of empty units as a “devastating blow to our city and our economy”, he added: “I urge you to provide rent relief for the duration of the time our businesses were locked down.
“The alternative is that I will have to insist that the city explores compulsory purchase of the arcades. I’m prepared to do whatever it takes to protect our city’s unique heritage, to support our independent business owners and to ensure our arcades are vibrant once again. I hope you are too.”
We sought comment from Mansford but did not get a response.