Future of Council-Owned Property Company to Be Reviewed After £800K Losses

The future of a property company owned by Harborough District Council is set to be discussed after it recorded losses of more than £800,000 over the past two years.

Councillors will consider options for Harborough District Commercial Services at a cabinet meeting next week.

One option understood to be on the table is winding up the company, which owns properties in Market Harborough town centre occupied by Tesco and Sports Direct.

The company owns properties in Market Harborough town centre occupied by Tesco and Sports Direct.

Harborough District Commercial Services was set up in 2019 and purchased the two retail units on The Square and Commons car park, along with flats above one of them.

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

The firm lost £663,628 in 2023/24 and a further £157,937 the year after, with the council saying the pandemic and broader pressures across the retail sector had significantly impacted its performance.

The previous coalition administration at the council described the company, which was established before it took control of the authority, as a “complete white elephant” and suggested the properties could be sold.

The Local Government Association has previously said the company’s potential had not been fully realised, while external auditors raised concerns after accounts were submitted late for a second consecutive year.

A council spokesperson said: “Shareholders of Harborough District Commercial Services Ltd will be considering a report next week in relation to the performance of the company.”