Council Set To Wind Up Property Company After £800k Losses

A company owned by Harborough District Council is set to be shut down after making losses of more than £800,000 over two years.

Harborough District Commercial Services was set up in 2019 and purchased two retail units in Market Harborough town centre, currently occupied by  Sports Direct and Tesco, along with flats above.

The intention was for the arms-length company to invest in further property to generate income for the authority, but no further purchases were made.

The ruling coalition group at the council says the company, established before it took control of the authority, has been a “complete white elephant.”

The company owns retail units in Market Harborough town centre, including premises occupied by Tesco, along with flats above.

The Local Government Association previously said the firm’s establishment had not been fully maximised, while external auditors raised concerns last year after its accounts were published late for a second consecutive year.

Documents seen by HFM show the company made a loss of £663,628 in 2024 and £157,937 last year.

Labour Councillor Jim Knight, the council’s finance portfolio lead, said the situation had been stabilised through efforts to secure long-term, high-quality tenants and offset losses from previous tenants.

However, he said the financial position remains “deeply concerning”, with expected losses running into the hundreds of thousands of pounds and potentially reaching seven figures in terms of asset value.

The company owns retail units in Market Harborough town centre, including premises occupied by Sports Direct

Lib Dem cabinet member councillor Darren Woodiwiss said: “The company was set up in 2019 under the previous administration, under the leadership of the Conservatives and has arguably manifested as a complete and utter white elephant.”

Lib Dem Cabinet member Councillor Jo Asher added: “The Conservatives oversaw the setting up of this company, praising it as a major project for the future and a huge potential income opportunity, but the reality – the mess that the coalition has inherited and now has to resolve – is something very different.”

A report to be considered by the council’s Cabinet will look at future options, including the potential sale of the properties.

The council’s Conservative group did not wish to comment at this time.