One of Newport’s main shopping centres has fallen into receivership after an incredibly difficult financial year, with the leaseholders facing bankruptcy.

Kingsway Shopping Centre is facing the unknown with the leasehold being put up for auction by receivers Cushman and Wakefield next Thursday. The guide price is currently set at £1m.

Leaseholders Kingsway Investments (Newport) LLP was officially placed into liquidation in August and the centre has been in the receivership of Cushman and Wakefield since May.

The centre’s significant financial difficulties have only been exacerbated by the recent mass exodus of some big brands, including Shoezone, and many popular independent retailers, such as the gift shop Luv 2 Give and fabrics store Danielle’s Fabrics.

This has been made even worse in recent weeks, with the announcement that Newport’s Wilko is due to close its doors for the final time on Sunday, September 17 after deals to save it fell through.

Despite the shopping centre’s current uncertainty, Cushman and Wakefield currently have no plans to close it.

There have been reports there are already a number of interested parties, who have suggested many options, including potential redevelopment. 

A large part of the decision-making for the centre’s future lies in the hands of Newport City Council as the freeholders.

They have confirmed that any buyers or development will need their full approval and be subject to the full planning application process.

If the auction next week is not successful, Cushman and Wakefield will be able to hand over the leasehold fully to liquidators, who could then decide to hand full control of Kingsway’s future to the council.

Newport City Council have confirmed that despite the ongoing uncertainty, the centre is continuing to operate as normal.

A spokesperson said: “As the freeholder, the council will have a role in considering potential leaseholders and will work to ensure there is confidence in any new investor and that they share our aspirations for the city centre.

“The council is working closely with partners and the receivers, the priority being to a secure the future of this key city centre location.

Details of the existing buildings and usage are included within the auction information. Any proposed change of use would be subject to the normal planning procedures.”

You can view the auction information here.