SCOTLAND’S largest indoor shopping center owed more than £114 million when it collapsed, including millions in unpaid tax.
East Kilbride Shopping Centre has been managed by administrators since its collapse in 2022, with those now managing the centre’s affairs trying to pay off millions of unpaid debt by selling the building.
However, a recent deal to sell the million-square-foot shopping centre has fallen through, according to The Herald.
It comes after a court has granted an extension to the administration of the South Lanarkshire retail centre until May 2027.
The court granted Administrator Interpath Advisory the extension in a bid to pay creditors.
The administrator also said: “Additionally, the court has granted authority to the joint administrators to pay the unsecured dividend distribution.”
Recent documents indicate that administrators aim to pay off the approximate £114m debt by ultimately selling the shopping centre.
Documents show administrators “anticipate that the senior lenders will recover part of their approximately £114m debt under their standard securities, the amount being dependent upon the ultimate sale price achieved for the centre”.
The report also showed that interim dividends totalling £5.8m have been paid to senior lenders since the business fell into administration.
Administrators also noted that HMRC has been “repaid in full” to the tune of £2.3m.
The administrators said: “The outcome for unsecured creditors depends upon the extent of non-assigned rents received and associated costs.”
They added: “A preferred bidder was selected and undertook significant diligence however acceptable terms could not be reached.”
The shopping centre covers around 1.40m square feet, which at its time was the largest in Europe when it opened in 1959, with more than 150 shops, restaurants, a cinema and an ice rink.
It is understood that the centre has operated on the same basis as it did prior to the administration appointment.
Administrators said they are working with a design team of architects, surveyors, and engineers to develop a plan which sets out the “strategic future for the centre”.
It comes after the Centre West of East Kilbride’s town centre was demolished as part of the local authority’s master plan to majorly refurbish the area.
The new council-owned development site in the town centre will see between 250-300 new homes built along with a new Civic Hub building which will provide a range of community, arts and leisure facilities, including arts venue and performance spaces.
A spokesperson for Interpath Advisory said: “The centre started as a parade of shops which comprised the high street for East Kilbride.
“In the 1960s this became integrated into a covered shopping mall. Since then there have many major additions and expansions to create the current footprint.
They added: “We are continuing to work closely with Reith Lambert, who act as property manager, and Scoop, who act as asset manager, as well as other stakeholders including the senior lenders and the local authority.
“We have been working with Scoop, a design team of architects, surveyors, and engineers and SLC to progress a development plan which sets out the strategic future for the centre.”
