Debenhams Sheffield: The Moor owner in bid to seize possession of former department store

NewRiver, which owns the freehold, has served a Section 146 notice which could force the owner to surrender the lease on ‘disrepair’ grounds.

But a firm acting for the owner has served a notice under the Leasehold Property (Repairs) Act 1938, blocking such a move without court permission.

The legal row is set out on estate agent Allsop’s website.

A broken window is visible on the dilapidated store, which has been empty since 2021.

Debenhams was owned by a firm called Lewisham MHA 5 Ltd until it went into liquidation in July last year. 

Now, receiver Aaron Kendall, at Moorfields Advisory, is trying to sell it for £850,000.

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Property expert, William Yardley, formerly of Landsec, told The Star there were just 41 years left on the lease which had left the site “in stagnation.”

NewRiver’s Section 146 notice was an attempt to break the deadlock by taking sole possession. If successful, “the site value will skyrocket.”

He said: “There isn’t enough time on the current lease for large scale redevelopment and a return on the financial outlay it would require. But it is long enough that the freeholder (NewRiver) can’t make reasonable plans for when it returns to their sole ownership as it is still a couple of working generations away. Currently, it is worth little value to either party.

“My interpretation is NewRiver has attempted to gain early possession on the basis the leaseholder is in breach of lease obligations (usually a standard clause is to ‘keep in good and proper repair’). 

“If successful, NewRiver will be able to redevelop the site or sell it on themselves, as its value will skyrocket.”

NewRiver and Mr Kendall did not comment.

Debenhams on The Moor closed in 2021 after the historic retail chain went bust. It was snapped up by London-based MHA for £1.5m. 

The former department store is a key building in Sheffield city centre.