Grimsby’s Freshney Place shopping centre has been placed into receivership.
The struggling shopping centre is now in the hands of its lenders following financial difficulties.
It will remain open as normal, with former owners Capreon continuing as the centre’s managers.
North East Lincolnshire Council say plans for Grimsby’s new cinema and market hall are still being worked on.
Receivers Cushman and Wakefield were appointed on January 18.
This happened days before the landlord of New Look – whose landlord is not Freshney Place – unexpectedly left the lease.
Letters have been sent to Freshney Place traders in the past week informing them of the change.
It is another blow to retail in Grimsby town centre after two years of challenges from the pandemic.
“However, Capreon have assured residents that work will continue to develop the planned multi-screen cinema and new market hall, which are a joint venture between Freshney Place and North East Lincolnshire Council.
A spokesman for Capreon said: “We can confirm that Cushman & Wakefield were appointed as Fixed Charged Receivers over Freshney Place Shopping Centre on January 18, 2022.
“Capreon has been retained by the receivers to continue their role as asset managers for the shopping centre which will remain open for trading as normal.
“We will, of course, also continue to work with North East Lincolnshire Council in the delivery of the proposed new cinema and market hall for the town centre following the successful award of the Future High Street Fund grant monies last year.”
North East Lincolnshire Council said the receivership will not affect plans for regenerating the high street.
A spokesperson for the council said: “As reported, Capreon has confirmed that it is to continue its role as asset managers for the centre and will continue to work with us in the delivery of the proposed cinema and market hall for the town centre following the successful award of the Future High Street Fund grant monies last year.
“The situation therefore remains unchanged, and we move forward with our plans for the complete regeneration of the Western side of the centre taking in the existing Market Hall.”
North East Lincolnshire Council and Freshney Place are to both contribute £5million towards the project, with £17.2million being provided by the national Future High Streets Fund.
Demolition on the existing market hall is expected to begin later this year if a planning application is approved.
Freshney Place were approached for comment and a spokesperson said they had nothing to add to the statement released by Capreon.