Cheltenham’s council leader and MP have blasted Cavendish House bosses for their handling of the building's financial fiasco.

They said Canada Life Asset Management needs to urgently clarify the "opaque" arrangement at the prominent site which is home to around 25 pop-up traders.

The London-headquartered landlord has refused to name the company which took over the lease of the building from Stanbury Estates in March.

It has failed to answer questions over and what due diligence it has done into how the property is being run or whether debts of at least £849,874 have been paid for the former department store.

Cheltenham MP Max Wilkinson said the company’s attitude “stinks” and its proposals for developing the site were a “bad joke”.

Meanwhile, Cllr Rowena Hay, leader of Cheltenham Borough Council, has written an open letter to Canada Life demanding answers and challenging it to "urgently resolve the concerning situation”.

She said the landlord had a “duty to act with integrity and responsibility” and was accountable “to some degree” for activities at Cavendish House.

In September a six-week investigation by Punchline-Gloucester.com found debt of at least £849,874 had been racked up  for the building, with bill demands issued to Stanbury Estates for business rates, gas and electricity. Traders said most of them paid their rent in cash to a security guard, who Punchline understands suddenly left the role earlier this month after our article was published.

In the final moment before publication Canada Life said the tenancy had changed in March. However, Punchline discovered rental receipts were still being issued in Stanbury's name and traders and utility companies were unaware of the change.

Last week traders voiced fears the building could go dark  in a matter of days after being handed letters from British Gas about a £411,428 unpaid electricity bill.

Cllr Hay said the pop-up business at Cavendish House, launched by Stanbury Estates in March 2024 had at first appeared to be a “temporary positive solution”.

But with the new unnamed lessee failing to answer questions and unpaid bills stacking, the situation now appears "uncertain and worrying".

“I call on Canada Life to provide clarity on the situation at Cavendish House and provide certainty to the hardworking traders who currently occupy the property on their immediate future,” she wrote in her letter.

She has also questioned why no “viable proposals” have been brought forward for development of the site since House of Fraser closed its doors 18 months ago.

“I firmly believe that in purchasing Cavendish House, Canada Life took on the responsibility of being a custodian of a building with a 200-year-old heritage and legacy on our Promenade. 

“In this context, I believe that as a company you have an obligation to fulfil the commitments and values proudly stated by your company and commit to delivering lasting and positive change to a central part of our town and to a flagship property.”

Cheltenham MP Max Wilkinson said: “Canada Life’s website makes all sorts of claims about its

positive corporate values and the way it does business. Sadly, their entire approach to Cavendish House paints a picture of a company that doesn't live up to those values. That includes in its communications with me and my office, which have been strained.

“Why is the company willing to use one of its investments to enable this sort of opaque financial arrangement? They must know that even if it’s legal, it looks dodgy. 

“Why is it dealing with companies that are apparently so difficult to pin down? What are the pop-up stallholders supposed to think? Most importantly, why is Canada Life failing to bring forward a redevelopment scheme for the building?

“Their only proposal so far was for a scheme underwritten by Cheltenham taxpayers.

At a time when everyone knows the taxpayer and local councils are already under huge financial pressure, that’s a bad joke. Frankly, Canada Life’s approach stinks. Cheltenham deserves better.” 

Leaseholder reponse

Following our original article Canada Life told Punchline to contact a man named Harry who represented the current tenant.

He refused to name the new company, but said it had nothing to do with Stanbury Life and was not liable for any previous bills.

Traders said he has been involved in running the site since the start of the pop-ups but he declined to explain his involvement with the company.

He said a change of tenancy (CoT) had been applied for and was "ongoing".

"This is an unusual situation and a difficult one," he added" but we can assure you the new operator will not allow the lights to go out, as we value the traders who we took over, rents will be payable to the new company as the process is underway.

"It's ok for people to make assumptions but when they are not having the correct information this is what leads to such rumors.

"We are currently in discussion with our corporate solicitors, to take action on stopping these so-called allegations which are unfounded."

British Gas said it had never been able to get hold of Stanbury Life regarding its unpaid bill and EON said it was unaware of the change of tenancy.

Punchline wrote to Stanbury Life in September regarding the unpaid bills but never received a response. Canada Life has refused to pass on contact details or put us in touch with the company.

Punchline-Gloucester.com says: "The tenant's representative Harry has claimed we have made "unfounded allegations" but that is simply not true.

"We do not have the name of the new company running Cavendish House and have never made any accusations against it or said it is responsible for any unpaid bills.

"He said the correct information is needed to prevent rumours and we absolutely agree. That is what our reporters have been working hard to uncover for weeks.

"Sadly they have been met by silence from Canada Life and Stanbury Estates about the situation and a lack of information from the council about how it plans to retrieve the unpaid business rates owed to taxpayers.

"Political leaders have now stepped up to address the situation, which is causing traders we have spoken to so much stress and worry.

"We hope Canada Life and the new tenants will do the same and provide some honest answers to traders and the people of Cheltenham, so they know where the future of this landmark business property is headed.

"Punchline will continue to investigate businesses and council dealings it deems of public interest to ensure people are held to account for how they conduct themselves in Gloucestershire.

"We thank our sponsors, advertisers and tens of thousands of our loyal readers for their continued support which allows us to report important issues that affect the county."

Landlord response

Canada Life Asset Managment later responded to the above article in a written statement from a spokesperson.

It said: "We have been actively investigating the reported concerns regarding Cavendish House, and work is underway to address them. Tenants are required to comply with the terms of their lease agreement and where these obligations are not being met, appropriate action will be taken.

"Our immediate priority is to ensure that the site remains operational, and we are working at pace to provide certainty to independent traders as we approach the busy Christmas trading period.

"Canada Life has been a longstanding and active investor in Cheltenham, with over 20 years of ownership of Regent Arcade Shopping Centre which has seen continual investment to enhance the town centre's retail and leisure offering. Following the exit of House of Fraser from Cavendish House last year, we ensured that the site was not left empty and continued to serve the local community, while we work towards a long-term solution that will deliver economic and wider benefits to Cheltenham.

"During this period, we have successfully progressed through a pre-application planning process and secured approval to remove the bridge connecting Regent Arcade to Cavendish House. The removal of the bridge link is a key step towards the future redevelopment of the site."

Read Cllr Rowena Hay's letter in full below.