Independent Traders Criticise Sports Direct Rent Deal

Independent traders in Market Harborough have criticised Harborough District Council after it emerged Sports Direct was given a year’s free rent on its town-centre premises.

The retail giant opened in the town last November after signing a ten-year lease on the unit vacated when Poundland closed, but details of the deal have only now come to light.

The premises at the Commons Car Park is owned by Harborough District Commercial Services Ltd (HDCS), the council’s property company, which is being wound up following financial losses.

Independent traders say if incentives are being offered to attract major retailers, similar support should also be available to smaller businesses in the town.

Jarrod Burke owns sweet shop Randalls:

The deal with Sports Direct included a 12-month rent-free period, after which Sports Direct is due to pay £60,000 a year.

The retailer also has the option to leave the premises early in return for a one-off £30,000 payment.

The council says securing Sports Direct has kept the prominent town-centre unit occupied and helped protect the property’s long-term value.

It says offering a rent-free period was necessary to attract the retailer and reflects common incentives currently offered by landlords in the retail property market.

Wes Suter owns Steffans Jewellers and is among those unhappy with the deal:

A spokesperson for Harborough District Council said: “HDCS has sought to protect and maximise the value of its assets wherever possible. This has included retaining Tesco as a tenant and, following Poundland’s departure from the site at The Commons, securing Sports Direct as a replacement tenant.

“Sports Direct has brought a new and affordable sports retail offer to the town, while also ensuring the continued occupation of a prominent retail unit. To secure Sports Direct as a tenant, it was necessary to offer terms that reflected prevailing market conditions. These included a rent-free period, which is a common incentive currently offered by landlords to attract high-quality occupiers.

“Securing Sports Direct has helped maintain occupancy, generate rental income and support the long-term value of the property. Had the property remained vacant, its investment value would likely have been significantly lower.”

Gareth Thomas, President of the Market Harborough Chamber of Trade and Commerce, told HFM there are mixed views about the incentive offered:

HDCS was established in 2019 to undertake commercial investment and generate returns from property assets. It also owns the premises occupied by Tesco as well as five flats above the property.

The council says the company has faced falling property values since the Covid-19 pandemic, reflecting wider challenges in the retail property market.

Councillors agreed to close down the company earlier this year, with the properties to be sold and any remaining assets transferred back to the council once it has been wound up.