Purpose

The Tenancy at Will enabled the retailer to occupy and trade from the unit within a short period while the new lease was being drafted and agreed. Under the arrangement, the tenant was liable for all occupancy costs, including service charge, utility costs, business rates and insurance. The arrangement minimised the period during which the unit was vacant and ensured continuity of trade.

Decision

That approval be given to authorise a Tenancy at Will to proceed on the terms detailed in Appendix 1.

Reasons for the decision

The Council is the owner of the Ladysmith Shopping Centre.  16 Mercian Mall is a retail unit within the centre.

The current tenant S&PB Retail Limited, trading as the ‘Pound Bakery’ entered administration in September 2026 and vacated the unit.  This report is to seek approval to grant a Tenancy at Will to David Wood Craft Bakery Ltd who are keen to occupy and retail from the premises.

A Tenancy at Will for short-term occupation is required to ensure continuity of trade, whilst governance for a new lease is obtained.

The proposed Heads of Terms for the Tenancy at Will are detailed in Appendix 1. 

Alternative options considered

The unit could remain vacant with the Council liable for all of the occupational costs.