Future of shop at risk over rent rise

“Juzzah I was referring to Mr Chaudry's next big plan of spending around £5m to bring the old Total Fitness gym on the A34 back to life in the form of the next M Club to compliment his other leisure businesses in the area. Nowhere in the article does it state the reasons behind the large rent rise on an already hefty amount, in fact it clearly says that Mr Chaudry would not comment at all on individual lease issues.

Do you really think that Newcastle is so prestigious a town compared to where the other Womble branches are that it warrants paying almost double the rental? Really?”

“The article isn't really just about the fact that the rent is going up, it's also that the rent for the premises is already unjustifiably high in comparison to other towns. MIC Properties are of course justified to pass increased costs onto their tenants. but their tenants are just as within their rights to shut up shop and leave, either to close down completely, rent property through landlord whose rents are more reasonable and in line with other towns. Or even worse for the local area, to open up in a competing town instead. What The Womble Inn are saying is that they don't want to have to take this kind of action, but they might be left with no choice. It's not a case of running to the press to try to pressure the landlord - it's about drawing attention to the fact that the reason that Newcastle and other similar towns are becoming ghost towns with deserted shops and a lack of quality independent stores is because businesses simply can no longer afford to do business in them. If there were no vacant premises in Newcastle, and competition for them was high, then I'd perhaps understand why rents are high too. As it is, this will just result in another well-known and well-liked business leaving town, and the landlord being left with an empty premise generating no funds for him.”

“SC_Newc - Firstly you ask why the other shops have cheaper rents then list the areas which answers your question! You then state that shops throughout Newcastle have high rents in which case I cannot see where the argument is? Then you state 'gotta find funds for the next big buy' which I cannot see where it relates???
If this was a story about this shop owner making his best profits ever you would all be on here saying well done and how it is good that someone is making money! Yet when a landlord is forced to put rent up due to rising costs etc he is made out to be the bad boy, why??? Haven't costs risen for everyone, why would it be different for a landlord. My mortgage goes up once every couple of months or so it seems but I don't go running to the sentinel that I might loose my home because I don't think I can pay for it!!!!”

“Juzzah how can it be justified that the other branches are only paying £12,000 per year in rent? Northwich, Sale and Skelmersdale I don't think Newcastle is the rich neighbour to any of those towns is it? And a rent rise is one thing but this is around 9%!

Fact is, rents in Newcastle are shockingly high all over the town, this is why privately owned small businesses can't afford to stay there, which creates a circle of less shops, less people visit, the remaining shops lose trade and start to struggle to the point of having to cut their losses and close up.

Still, I guess business is business eh, gotta find the funds for the next big buy.”

“Why did I get so many red arrows for my last post, it is true that people on here don't seem to like the truth!!! I agree with staffsuk on one point if you can't afford the rent in the ironmarket look to move somewhere cheaper!!! I am sorry but if this shop is so very popular as the comments on here lead you to believe then surely he can afford an extra £40 per week??? Making statements like 'I was hoping for a reduction in rent' is just laughable, seriously this is someone trying to pressure the landlord by using the press!!!”

“by JuzzahTuesday, October 30 2012, 1:17PM
"So basically the landlord has to face rising costs for the upkeep of the propeties etc but they are not allowed to pass these increases on????"

No he doesnt as I suspect it will be a FRI Lease which means the tenant is responsible for insuring the property as well as all repairs and upkeep on the property”

“No way Mo is ripping people off again, well refuse to pay and see his empire crumble the robbing b****r. Waterworlds more expensive than watching a premiership football match these days, its a joke, boycott his business's and lets see him suffer for a change.”

“I would say look for another location in the town perhaps in a lesser prime location. People will still flock to the Womble as it's a well known establishment. As for Mo - well just think about how much YOU will lose when your shop is empty month after month as no-one wants or can afford to take it on. Go figure...”

“So basically the landlord has to face rising costs for the upkeep of the propeties etc but they are not allowed to pass these increases on????”

“Interesting.Quite a property empire.
Anyone got a list?”