Closure only option for some CBD businesses as relocation proves difficult

Wednesday, 6 February 2019

The CBD Invercargill block encompassing Tay/Kelvin/Esk/ Dee street's which may be mostly demolished for inner city development by HWCP Management Ltd.

Many of the remaining businesses in the soon to be demolished CBD are struggling to find suitable buildings to relocate to and closure is now the only option for some.

HWCP Ltd - a joint partnership between the Richardson Group and Invercargill City Council - are waiting for resource consent for its plan to demolish an entire block and build a new undercover retail precinct.

In the meantime the businesses still in the block are working through their future.

Lusty's Showcase Jeweller on Esk St closed for good last year, as did the The Lollie Shop in the Cambridge Arcade last month.

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Just Incredible, which has operated in Invercargill since 1997, is also set to close at the end of the month.

Christchurch-based owner Dave Ellis said they were keen to continue with a shop in Invercargill but have failed to find a new building to operate in.

The lease with HWCP Ltd runs out at the end of the month and Ellis has decided to close the doors at its Tay St location for good.

The business have five staff in Invercargill, including one fulltime manager.

Ellis still held some hope of finding a big enough building, in a suitable location, but conceded it did not look promising.

Ken Anderson, who owns both the Gore and Invercargill Stirling Sports franchises, was confident they were close to finding a new site after months of worry.

Anderson and his landlord had invested a 'significant' amount of money into the building when he setup the Stirling Sports store in Esk St two years ago.

At the time Anderson had no idea the building was being earmarked for demolition.

He said it was concerning, however he has since been working with HWCP Ltd in regard to relocation. Anderson was now confident he will have another building in the CBD to move to.

'It's certainly looking a lot better now than it was before Christmas,' he said.

The eateries have a more challenging assignment when trying to relocate given the cost of setting up a commercial kitchen.

One business owner did not want to be named, given they were still trying to work with HWCP Ltd around assisting with relocation.

However the owner said the situation was frustrating and now feared for the future of the business.

The owner estimated it would cost about $340,000 to $400,000 to setup a modest eatery and fit out a new venue. It was money the owner said they did not have.

'It's destroyed our business.'

Pinch of Spice owner Manish Singh said they also have not yet found an alternative building to move to but said he could not afford to close down his business.

'We can not afford to close. There are two families who rely on this business,' he said.

Singh said he had a six-year lease for the building.

'We are not moving. I will not leave this place, until the cops come along I suppose.'

Singh said he has been in talks with representatives of HWCP Ltd about assisting with relocation but nothing had been confirmed as of yet.

Businesses which Stuff spoke to said they had not yet been given a date as to when they need to move out by.

Although HWCP Ltd director Scott O'Donnell told Stuff once they had resource consent they would start the demolition process as soon as possible.

'Our first hurdle is the resource consent hearing which is planned for 25 March. We can't start demo until we have this consent.

'We would like to start demo ASAP after we have consent, hence we want to move tenants as fast as possible,' O'Donnell said.