Keel Row Shopping Centre in Blyth to close due to 'unsustainable' losses and be redeveloped by Northumberland County Council

Having purchased the site, its car park, and the nearby vacant property at 7-9 Bridge Street from current owners Northumberland Estates, the council has announced the centre will close for good in early 2024 and the site has been earmarked for development.

The centre is “no longer viable” with just eight of its 20 units currently let to commercial tenants, meaning only 25% of available floor space currently provides rent.

Michael O’Driscoll, commercial property investment director at Northumberland Estates, said: “We have owned Keel Row Shopping Centre and car park for several years and despite additional investment into the site and ongoing efforts to market retail units within the centre, there has been a sustained decline in tenancies.

“The pandemic was incredibly tough for high street businesses and, sadly, the Keel Row is no longer a viable commercial venture.

“We have been trading at a loss for a considerable period which is unsustainable. The tenants have been made aware of the sale and the proposed plans.

“I appreciate that this is disappointing news but our agreement with Northumberland County Council means that there is now time to plan for the future and attract new opportunities that will bring the town back to life.”

Northumberland County Council has said it is working with the centre’s current tenants to find alternative locations in Blyth, in the hope they will remain in the town centre, and also that it will offer support to any affected employees at the centre.

Councillor Wojciech Ploszaj, cabinet member business, said: “The Keel Row Shopping Centre has been an important part of life in Blyth for many years but has been struggling.

“We have known for some time the centre was likely to close and that the owners were considering options for closure, sale, and non-retail development.”

Croft ward councillor Kath Nisbet added: “I am sad to hear this news as I am sure many in the town will be.

“I remember in days gone by when the Keel Row was thriving. Unfortunately, this has not been the case for some time.

“I hope that businesses still based in the centre will relocate in the town. I am very conscious that it continues to be a challenging trading period in Blyth but the town and its business community still has a lot to offer.”

Investment for the council’s redevelopment of the site will be drawn from the existing £90m Energising Blyth regeneration programme.

The proposed Energy Central Institute higher education and research facility, set to be the second phase of the town’s Energy Central Campus, will now be located at the Keel Row site.

The council has also revealed there are plans for a new hotel in the area in a bid to boost visitor numbers, and have pledged that the site will continue to include town centre parking.

Cllr Ploszaj said: “The town continues to have a range of popular retail businesses and we are delivering major improvements beginning this summer.

“This includes the new cultural venue which will house a new three screen Jam Jar cinema plus improvements to Market Place and Bridge Street.

“The acquisition means we can bring forward more development in the town centre including investment in educational, innovation, and cultural activities.

“This will make the town a more welcoming, safe, and popular place to visit, attracting a wide range of people wanting to work, learn, and enjoy all the town has to offer.”

Mayor of Blyth Town Council Warren Taylor said: “I would like to stress the disappointment that Blyth Town Council feels regarding the impending closure of the Keel Row, whilst recognising the situation Northumberland Estates have found themselves in with the centre no longer commercially viable.

“We are optimistic that the development of the cultural venue in the Market Place, alongside the other Energising Blyth projects, will provide a boost to retailers in the town centre and encourage other businesses to invest.”