Traders rent rise fears (From Stroud News and Journal)

Traders rent rise fears

SHOPKEEPERS in Stroud's Cornhill believe they are facing financial ruin now that the freehold on their shops has changed ownership.

Hooper Overseas Ltd took over the freehold on a large number of Stroud's shops at the end of February when former owner Kaska Company Ltd sold up.

Small businesses occupying starter units in Union Street are concerned that the new London-based agent, Fletcher King, could drive them out of business.

Hooper Overseas owns more than a dozen shops including all those in Union Street, Cornhill Market, Stroud Bookshop, Winston's Wish, Adams, Iceland and a number of the retail units in Kendrick Street including Webworks and the Car Phone Warehouse.

Although the change of hands is unlikely to affect the larger businesses and chain stores it could have a severe impact on the privately-owned, smaller outfits.

Chris Reay of Cornhill's hardware store Chris's Shed summed up the problems.

"The new agent sent a letter saying they want three months' rent in advance immediately without any notice and it's 20 per cent more than I was paying," he said.

Previously Mr Reay was paying just one month in advance and occupying a small starter unit where the previous Landlords, through their Stroud-based agent Andrew Watton, understood the town's needs and were prepared to be flexible and realistic.

Mr Reay told the News & Journal this hands on approach worked for both parties and he has serious doubts about working with an agent which is based more than 100 miles away.

"There's no point being in London and trying to run things in Stroud," he said.

"I got in touch with the new agent asking for an explanation about the changes and I haven't heard from them since."

Chris's Shed occupies one of the four small units alongside the Cornhill Market which have been geared towards new businesses trying to set up shop in Stroud.

The rent increases year by year, starting low to give new enterprises a chance to get established, and Mr Reay had a tenancy agreement saying he would only have to pay one month at a time so as not to put too much of a drain on his cash flow.

"The whole idea of theses building down here in the first place is that they are starter units for businesses," he said.

"To raise the rents is a waste of time - people only start here because it is cheap and if they go up nobody is going to be able to afford to stay."

Gavin Hubrick of Fletcher King told the News & Journal he was under instruction from his clients not to comment and Hooper Overseas were unavailable.