Modus’ Grand Arcade in administration
THE companies behind Wigan’s Grand Arcade shopping centre, have been placed into administration.
KPMG Corporate Recovery was appointed to Modus Properties (Wigan) and Modus (Wigan) on Monday amid a funding crisis. The two-year-old Grand Arcade will remain open while a buyer is sought.
A brief statement from KPMG said: “No impact on customers or tenants is anticipated.”
Although separate trading companies these businesses are related to the troubled Salford-based Modus Property Group.
Modus, led by entrepreneur Brendan Flood, has like many peers been hard hit by the credit crunch, ans is reportedly seeking to refinance.
Grand Arcade opened in March 2007 and claimed to be the country’s first Carbon Neutral shopping arcade. The 450,000sq ft site is anchored by Debenhams. Tenants include M&S, Boots, Topshop, BHS and HMV.
Peter Macfarlane, investment manager with Spectrum Investments, which manages the Grand Arcade said: “This is a healthy business which has been undermined by the wider economic picture.
“A number of national retailers have gone out of business and we have had to cut our rents to get new tenants in, while having a fixed cost in terms of a mortgage payment. This has caused a funding gap.”
Mr Macfarlane said all but one shop and a kiosk were let at Grand Arcade.
Earlier this year, another Modus project, Trinity Walk, a joint venture in Wakefield, Yorkshire was placed in administration.
Meanwhile two other Modus businesses, Modus (Trowbridge) and Modus (Swindon) are reportedly facing High Court winding-up orders over unpaid planning fees.
