Bailiffs repossess Harrogate shopViper Rooms owner says Harrogate landlords need to ‘get real’ with rent

The man who owned Harrogate’s last nightclub has spoken of his frustration at trying to operate in the town.

It is now six months since Viper Rooms was re-possessed by landlord North Yorkshire County Council.

It has remained empty since, despite repeated claims by the council of “significant interest from potential tenants”.

Viper Rooms owner Paul Kinsey said he had been in protracted negotiations over a new lease with the council before it re-possessed the building.

Mr Kinsey added he still owned the fixtures and fittings and had continued to negotiate with the council about re-occupying the site.

But a deal has not materialised and his frustration has prompted him to speak out.

The Viper Rooms unit was part of the grade two listed Royal Baths, which the council bought for £9 million in 2018. The baths also includes the former Potting Shed unit, which has been vacant for five years.

Viper Rooms and Potting Shed

Still vacant: the former Potting Shed and Viper Rooms — both part of the Royal Baths.

Their ongoing closure led Mr Kinsey to claim councillors “haven’t got the commercial experience or knowledge” to run large commercial assets and they were making unrealistic demands on tenants.

He said he spent £370,000 refurbishing the club pre-covid and the council was now requesting £150,000 a year on rent and service charge even though the landscape had changed post-pandemic. He said:

“If they think they can get £150,000, good luck to them. It’s a difficult market. The council grossly overpaid for the Royal Baths without doing proper due diligence. It was a trophy asset.

“I can understand them wanting to get a good deal because of that but they have to get real.”

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‘Crippling overheads’ on Parliament Street

Mr Kinsey, who lives near Wetherby, said he still wanted to have a venue in Harrogate and had his eye on one site.

But he questioned the appeal of the town to leisure operators, adding the main reason he was so keen to return to the Royal Baths was because he owned the fixtures and fittings and had spent so much on refurbishing it pre-covid.

He said many commercial landlords over-estimated the value of Harrogate and pointed to the number of failed ventures on Parliament Street as evidence of “crippling overheads”.

“I don’t think Harrogate is on many people’s target list. You get more bang for your bucks in other places.

“People who don’t know the area believe the streets are paved with gold. There is a good wealth profile but they spend elsewhere — Leeds, London or abroad.

“Look at how many businesses haven’t been able to make it work on Parliament Street. These are good operators, not cowboys, but even they couldn’t make it work.”

The Stray Ferret asked North Yorkshire Council, which succeeded North Yorkshire County Council on April 1, if it had a response to Mr Kinsey’s claims but it did not issue one.

The Viper Rooms site is being advertised

Asked for an update on the Viper Rooms, which is now being advertised by agents Savills, and the Potting Shed, it said it had nothing to add to its last statement two months ago, when Gary Fielding, the council’s corporate director for strategic resources, said:

“A unit which did house the Viper Rooms is continuing to attract significant interest, and an agent has been appointed to co-ordinate discussions with potential tenants.

“A lease has been signed for the final unit and a dialogue with the tenant is continuing to establish when the new venture will be launched.”

The council’s £9 million spending on the Royal Baths also included the JD Wetherspoon pub and the Royal Baths Chinese Restaurant.

Viper Rooms: council issues statement after repossessing Harrogate nightclub

North Yorkshire County Council has said it acted in the “best interests” of taxpayers after it repossessed Harrogate’s Viper Rooms.

Bailiffs acting on behalf of the council entered the Parliament Street nightclub on Friday and changed the locks.

Notices pinned to the doors said any attempt to re-enter the premises would result in criminal or civil proceedings.

It prompted the club to announce on social media, hours before it was due to open, that it had closed with the loss of 30 jobs.

The venue, which was Harrogate’s last remaining nightclub, is part of the Royal Baths commercial investment portfolio acquired by the council for £9 million in 2018.

Viper Rooms

The club is part of the Royal Baths.

Gary Fielding, corporate director for strategic resources at the council, said in a statement to the Stray Ferret:

“We are unable to discuss details about specific cases that North Yorkshire County Council is involved in.

“However, we will pursue our policies that protect the best interests of North Yorkshire’s taxpayers, and will therefore act accordingly.”

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The council has been under pressure to generate better returns on the Baths.

It was described as an “underperforming trophy asset” by one councillor last year because of its low rate of investment returns.

Last month the council warned it would take a tougher line on tenants following further poor investment returns.

Mr Fielding said the council “has done all it reasonably can to support its tenants” through covid, adding:

“We work with our tenants to understand their circumstances in order to maximise the income into the council.

“However, it is not the council’s responsibility to support tenants indefinitely, and if businesses are not sustainable then we work with tenants to bring tenancies to a close.”