Department store developer enters receivership
Spinning JenniesThe company behind plans to rejuvenate a former department store has been put into receivership.
The old Beales building in Kendal, Cumbria, was bought in 2021 for an undisclosed fee and was to be converted into shops, a food court, apartments and a champagne bar, branded as Spinning Jennies.
Heart of Cumberland Ltd, which owns the building, was placed into Law of Property Act (LPA) receivership at the start of January, with its most recent accounts showing debts of just over £4m.
The owners said issues with getting the building's mortgage refinanced had caused the problem but the Spinning Jennies shop and tenants were unaffected. The receivers have been approached for comment.
The former department store on Finkle Street became empty when Beales shut in March 2020 after falling into administration.
The Spinning Jennies shop on the ground floor opened in April last year, selling locally produced food, drink and gift products, but other areas of the building remain closed.
The owners said the building was mortgaged for £1.8m and the bank had been adding default interest at a rate of £60,000 a month.
An LPA receiver has been brought in by the bank to manage the building and has the power to force it to be sold.
Owner Geri Ward said development work had progressed: "Half of the work has been done - in the most valuable parts of the building."
She said for the past two years Heart of Cumberland had been looking for bank support but was "struggling".
Ward said the company's financial difficulties were caused by unaffordable interest fees being added to its debt and being unable to find alternative finance.
"If there are Cumbrian investors with a love of the High Street and Kendal, they're welcome for a chat," she added.
