Council considers £42m loan for online retailer

WARRINGTON Borough Council is considering a £42m loan to online retailer The Hut to encourage it to base a new distribution centre at the Omega logistics park.

Confidential council documents seen by the Warrington Guardian show the authority is keen to match similar financial incentives being offered by Manchester Airports Group to lure the company to its new Airport City scheme.

The report says Warrington could match the airport’s offer but does not plan to offer further incentives if the airport ups the ante.

According to the Guardian’s report the council document cited The Hut’s modest profits of £300,000 in 2012-13 as a potential risk, although it was encouraged by a 30% hike in revenues to £145.3m.

It quoted council leader Terry O’Neill saying: “It’s a company that has expressed interest in going on Omega and we had to put something forward in principle. It is not a decision that has been made or we have committed to.”

The Hut has its headquarters in Northwich and two warehouses at Stretton near Warrington which are on short leases ahead of a planned move to a purpose-built site in 2016. It is looking for a 500,000 sq ft distribution base and is separately searching for a 50,000 sq ft headquarters building.

There was no comment from the council at the time of publication.