News: Forge Island loses restaurant brands as challenging trading conditions bite

A company connected to the restaurant operator that signed up to open a number of brands in Rotherham town centre has gone into liquidation.

Rotherham Council has confirmed that just one of the operator's brands is now coming to Rotherham.

Forge Island is the town centre's new landmark leisure destination being delivered by the council in partnership with Muse. The £47m development is anchored by an 8-screen boutique cinema operated by The Arc Cinema and a 69-roomed Travelodge Hotel.

With the hotel now open and the cinema slated to begin screening films in September, the food and drink units were handed over on July 1 2024.

The partners had celebrated the development being fully let over a year before opening, announcing deals that would see six independent restaurants open on the riverside, including Casa Peri Peri, Estabulo, Sakku Samba, Caffé Noor, Cow & Cream and The Rustic Pizza Company.

A triple-header deal was signed with Thistle Group who would bring Casa Peri Peri, Estabulo Rodizio/Sakku Samba as a dual-branded concept, and Caffé Noor.

On July 8, Dabangg Hospitality Group Ltd T/A Estabulo Rodizio Bar & Grill went into liquidation. Dabangg shares a director with Thistle Property Holdings Group Ltd.

Dabangg Hospitality's website has gone offline but its LinkedIn page explains that it is "a prominent and visionary company that owns and operates five successful restaurant companies: Estabulo, Sakkusamba, Fleur, Caffe Noor, and Sakku."

Documents show that HMRC applied to the courts to have Wakefield-based Dabangg Hospitality Group Ltd wound up. A week later, Clark Business Recovery Limited was appointed as liquidator.

Further documents show that the group owed £7m to HMRC - £2.7m regarding PAYE and £4.3m regarding VAT.

Sakku Samba venues in Manchester and Bradford have recently closed but company directors appear unfazed by the liquidation with new companies created and new venues opening, including Raft in Manchester and Habbibi in Leeds.

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Back in Rotherham, the Forge Island website now only shows two outlets on its food and drink page - The Rustic Pizza Company and Caffé Noor.

Cow & Cream closed its remaining Barnsley store in September 2023, with the burger and shakes specialist stating that food cost prices, energy prices and packaging costs had made providing a value for money product impossible for them to achieve.

Rotherham Council’s Interim Strategic Director for Regeneration and Environment Andrew Bramidge said: “Unfortunately due to challenging trading conditions and circumstances beyond anyone’s control, operators have not been able to bring forward all the planned eateries for Forge Island at the current time.

“However, Thistle Group remains committed to Rotherham and will open its luxury coffee shop brand, Café Noor, at the gateway of the site as intended. Meanwhile, Travelodge hotel is already open on site and welcoming guests, The Arc Cinema is on track to open in early September, and Rustic Pizza is due to open its doors to the public this summer.

"Alongside our development partners Muse, we are already in discussion with a number of other potential operators who have expressed an interest in the site, and we will make further announcements about these in due course when agreements are reached."

It’s coming… pic.twitter.com/MrUJWSDJNs

— Chris Read (@christophe_read) July 9, 2024

Rotherham Council has fully funded the Forge Island scheme after its Cabinet approved an increase in the Council’s Capital Programme in 2022 to cover the £46.8m costs which were expected to be covered by the authority's own borrowing and capital resources.

Rotherham Council acquired the site in 2017 following the move accross town by Tesco. A 250 year lease to Muse was initially proposed before the council stepped in with the upfront costs.

The council expects that the repayment of capital costs will be met wholly or largely over the long term by revenue generated from commercial activity in the Forge Island development. At the time, the cabinet heard that the longer-term financial risks that the project presents relate to the Council’s ability to maintain the incomes levels from the lettings, car parking and business rates.

Forge Island website

Images: Estabulo / facebook /Chris Read / twitter

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News: IntelliAM AI secures DIF Lighthouse Funding Award

A subsidiary of IntelliAM AI plc, the Rotherham software company leveraging the power of AI and machine learning in the manufacturing industry, has been named as a "Lighthouse for AI" and secures a Digital Innovation Fund (DIF) Lighthouse Funding Award of £263,000.

The Dinnington firm, which recently floated on the stock exchange, has developed a platform that can be used when determining optimum run speeds or machine settings, help with stock keeping and hygiene processes, and help predict and prevent component failure. The aim is to increase production levels and reduce downtime.

The funding is for a research project into the application of AI in lubrication analysis is made by The Smart Manufacturing Data Hub which is funded by Innovate UK.

IntelliAM AI recently acquired 53 North, a provider of a broad range of asset care consulting and management strategies for manufacturers, particularly in the fast-moving consumer goods (FMCG) sector, including McVities (Pladis), Mars, Diageo and PepsiCo.

IntelliAM AI has access to over 180 manufacturing sites in the UK and has lubrication analysis results for thousands of components from the last ten years. Lubrication is one of the key drivers of manufacturing downtime.

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Using IntelliAM’s existing data, and new data to be collected during the project, a machine learning model will be created to advise OEMs and SMEs on best practice lubrication for their components.

Software will be built that allows component information to be entered and the MLM will then create the grease and oil lubrication schedules automatically. Software will also be built that creates an on-condition lubrication schedule based on bearing condition.

An oil analysis result checker will be created, so that organisations can upload individual oil analysis results and compare themselves to our 10 years of history, specific to the environment and component types. Any issues will be highlighted and advice on action given.

This project will help reduce machine downtime on manufacturers equipment and create resilience against the reduction in engineering skills that we currently have in the UK. Sustainability will be improved as oil will only be replaced when needed.

This project will impact the Company on three fronts, namely improved internal productivity, new machine learning access to SMEs and a commercial product to increase sales.

IntelliAM website

Images: IntelliAM

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News: Plans in for £11m Rotherham regeneration project

A planning application is on the table outlining a £11m regeneration project in Rotherham centred around Dinnington's market.

In last year's Budget, the government announced that Rotherham will receive £20m for regeneration for Wath and Dinnington. It came after earlier bids for funding for the schemes were turned down twice.

At Dinnington, the project will replace old buildings and market stalls with six new commercial units and a large building, which could be used by the community and for commerce. These buildings will overlook a landscaped town square that will be home to new market stalls, that will be stored when not in use.

The project will also open up a direct route from the bus station and car parks and create a clearer and safer gateway to Laughton Road.

Drawn up by AHR Architects and Oobe Landscape Architects, the plans confirm: "The proposal is to demolish the burnt-out building, the indoor market, the outdoor market, the colliery band building, and half of the shopping parade (36 - 44 Laughton Road). These structures will be replaced with six new commercial units, a pop-up market, a new commercial / community building to be used for public rental, and a fully landscaped area of public realm to create a new market square and clear routes between Laughton Road, the bus station, and well-used car parks.

"The remaining half of the shopping parade will be refurbished to complement the rest of the regeneration project."

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The plans state that the private sector has failed to address the declining physical infrastructure around the market and that businesses and residents are increasingly frustrated with the situation.

The plans add: "The Council's sustainable approach to uplifting the area will be centred on repurposing underused brownfield land and derelict buildings alongside investment in public realm to increase footfall to sustainable levels and restore a sense of pride of place.

"The Council is optimistic that this major capital investment in high quality place making and investment in local amenities will increase confidence in the area and drive a more competitive market."

Seen as vital to rejuvenating Dinnington town centre, new commercial units, refurbished retail units, a pop-up market offer, a commercial / community building and improved public realm are included.

Interest in the new units is expected to be high with letting costs being set at a fair market rate by the council. Consideration is expected to be given to the types of retailers applying to let the new units to ensure there is a broad range of retail and that units are open during daytime hours.

Rothbiz reported recently that Rotherham Council has been carrying out a pre-tender exercise to engage with the construction industry to establish the level of interest in the redevelopment projects, which are due to be completed in 2026.

Plans for Wath, which centre around replacing the town's library, were submitted earlier this month.

RMBC website

Images: RMBC / AHR

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News: Pricecheck reports strongest financial year

Pricecheck, an international wholesaler and distributor of fast-moving consumer goods, has reported its strongest financial year to date.

The company, which has its main warehouse facility at Beighton Link and further space at Manvers, both in Rotherham, smashed through its ambitious target of £100m turnover by 2020 and has now broken three financial records, achieving its best month, quarter and year ever recorded - all in the same week.

Trusted by the world's biggest brands, Pricecheck offers more than 6,000 branded products to customers in the UK and to more than 80 countries globally.

After a year of challenges and opportunities, Pricecheck finished 2023/24 with a turnover of £151m - growth of 15% on the previous financial year.

Sales for the final quarter reached £44m, which was 22% higher than the same period last year.

April saw the biggest month ever with revenue of £17.2m – a figure that once represented Pricecheck's annual turnover just 16 years ago, when joint managing directors and brother and sister duo, Mark Lythe and Debbie Harrison, took over the reins of the business from their parents.

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A spokesperson for Pricecheck said: "This is our 10th consecutive year of growth, and is one that has been driven by our expanding services. Our core offering of delivered wholesale remains the biggest contributor to turnover but the launch of new supplier partnerships, an increase in digital sales and developments within brand distribution continue to push our business forward.

"In the past 10 years, we’ve diversified from a delivered wholesaler across toiletries and household into a multi-category, multi-channel brand distributor. And there are plenty of new categories and markets to explore.

"To hit growth targets consistently for a decade is no easy task, but the Pricecheck team love a challenge! With a focus on improving efficiencies, innovation and people development – we’re excited to see what we can achieve in the year ahead."

Pricecheck's vision is to be the first-choice distribution partner for brand owners and customers across the world. It aims to continue to grow with ambitious plans to increase turnover to £200m.

Pricecheck website

Images: Pricecheck

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News: Owners plan to expand Parkgate with new foodstore

Parkgate Shopping, the 2nd largest purpose-built retail warehouse park in the UK, could get even bigger if plans are approved for a new foodstore on the Rotherham retail park.

Having acquired the park for around £60m, new owners, Columbia Threadneedle, have assessed the potential for expansion when the delayed £12m link road and Park & Ride completes later this year.

A new outline planning application has been submitted for land next to Matalan which is currently used as a Park & Ride for the tram-train.

With the relocation of the Park & Ride to a larger facility when the road opens, the new proposal is for a 20,000 sq ft rectangular unit "that is the required format of food retailers in order to provide linear aisle for convenience goods shopping."

The applicant is Sackville UK Property Select IV Nominee (1) Limited and Sackville UK Property Select IV Nominee (2) Limited c/o Threadneedle Portfolio Services Ltd.

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The plans discuss that it will be a national multiple food retailer that will be the new tenants, with the proposed store employing circa 50 full-time equivalent staff members.

No occupier is named but an analysis of the current market submitted with the application by agents, Savills, states that this size of store is popular with secondary foodstores including Waitrose, M&S and Co-op, and discount foodstore retailers including Aldi and Lidl.

As the site is classed as out of town, a retail assessment and sequential test is also included.

Sequential tests ensure that development is located in the most sustainable location first (usually in town centres), before other, less sustainable locations are chosen.

The analysis concludes that are no suitable alternative sites in nearby town centres, highlighting that vacant buildings like the Howard Building or former bingo hall on Corporation Street in Rotherham town centre do not lend themselves to retail requirements.

When assessing the potential impact of the range of convenience goods proposed to be sold from the new foodstore at Parkgate on established town centres, the applicants say that "the only centre that the proposed development diverts trade from is Rotherham town centre," adding that: "the impact on convenience goods floorspace will be 3.1%, which cannot be characterised as significantly adverse under any reasonable threshold."

The principal location in the town centre that the proposal will draw trade from is the Tesco Extra store on Drummond Street. Analysis shows that the impact of the proposal on that store is 2.8%, which is considered minimal.

New analysis puts the Tesco Extra trading at £71.98m at 2029, double the estimate of £29.6m in a 2017 study. The proposed foodstore at Parkgate has an expected turnover of £16.86m at 2029.

Applicants add that the new proposal would not have a significant adverse impact on the Forge Island or markets redevelopments.

The plans state: "The impact of the proposal on existing convenience goods retail facilities in centres is not significantly adverse. The impact of the proposal on defined centres when taken as a whole is not significantly adverse. This conclusion is not considered be unusual [sic] given the modest scale of the foodstore proposed.

"Further, the ambition for Rotherham is for the revitalisation of that centre as a leisure-led location. The proposal has no impact on this ambition.

"The proposal will enhance convenience goods provision in the local area, affording local residents a greater choice of convenience goods shopping facilities. It will provide a modest foodstore at an accessible site in close proximity to surrounding residential areas."

Parkgate Shopping website

Images: Columbia Threadneedle / Harris Partnership / Google Maps

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