Bosses who have been running Cavendish House have received warnings over at least £849,874 of unpaid bills.

Legal action has been threatened if the cash is not paid but a massive question mark hangs over who is actually running the Cheltenham shopping hub.

Stanbury Estates Ltd had been renting the property and running it as a pop-up shopping hub since last spring.

Rental receipts and bills are still being issued in its name and paperwork shows at least £413,475 of business rates were still owed by the company as of last month. That means around £827,000 of taxpayers money could potentially be missing over two years.

But this week it emerged that Stanbury's lease agreement ended in March. Shocked traders said they had no idea of the change and fear the tangled finances could see the enterprise suddenly collapse around them.

"I just don't want to see it all blow up in smoke, because we'll all suffer and it will impact badly on the town in general," said one trader who did not want to be named. "I've invested money into setting up here so I will be out of pocket by thousands if it shuts down."

It would be a bitter blow for the iconic building which traded as a department store for 201 years before closing in April 2024, deemed no longer fit for purpose .

The 14,000 sq ft, four-storey property, formerly home to House of Fraser, has now been filled with more than 20 small retailers while owner Canada Life Asset Management explores options for its redevelopment.

Accusations have been swirling for months over management of the huge town centre property. It was first opened up to small traders  in May 2024 and space has been rented by the likes of Future Nostalgia Toys, Fuddlecups Cafe, Bramble and Bloom Flowers, Sallydoolally Designs, Xtep UK running shoes, Elizabeth James Boutique, Tor's Children's Wear, String wool shop, Joyce Brooks Lingerie, Suits4You Ltd and the recently opened Cheltenham Tourist Information Centre .

A small group of tenants first noticed things were not running as expected last autumn and raised concerns with Cheltenham Borough Council in October 2024.

"As I understand it, Stanbury has not paid any bills whatsoever, apart from their rent," said one trader, who did not want to be named for fear of reprisal. "I believe they've never had any intention to do so."

In July traders were put in contact with the Counter Fraud and Enforcement Unit (CFEU) which works on behalf of six local authorities. It said concerns into the unpaid business rates were being investigated. The traders have heard nothing since and do not feel the council is doing its job properly.

"Why has it been allowed to go on?," said one. "There's no other rate payer in Cheltenham who would have been allowed to trade for 16 months and not pay one penny in rate bills. They wouldn't get away with it for more than two months."

Punchline-Gloucester.com has been investigating serious concerns about how Stanbury Estates Ltd was handling the finances since the start of August.

The company, which has a PO Box address in Cardiff, began renting the Promenade property 16 months ago and sub-letting it to small local businesses. Punchline learned most traders pay rent cash-in-hand to a security guard, inclusive of bills, and had no way of contacting Stanbury Estates directly. Others transfer money to a company called GB Birmingham.

While some were keen to share their concerns, our reporter was threatened by one trader in Cavendish House because we were "asking too many questions" and eventually pressured to leave the property. A letter posted to Stanbury Estates by Punchline in mid August has so far received no response.

On Wednesday Canada Life Asset Management issued a shock statement just 90 minutes after being told our article, detailing the unpaid bills, was about to go live.

It said: "Stanbury Estates are not the current tenant. Their lease ended back in March earlier this year. We have reached out to the current tenant to address the concerns raised."

We first contacted the building owner in August about the unpaid bills and asked whether Stanbury was still the tenant. It simply said the matter was being investigated. 

Punchline has now asked Canada Life for details of the new tenant and whether they have taken on any unpaid debts for the property.

It appears no one else was aware that the lease had changed hands.

Copies of three unpaid bills from August and September for Cavendish House, are all addressed to Stanbury Estates. One is from just 10 days ago and two threaten further action if payment is not made.

They showed Stanbury Estates owed £413,475 in business rates as of August 20,2025, £411,428 to British Gas as of September 2025 and £24,971 to npower/EON as of September 8, 2025.

One worried trader said it was an "absolute shocking disgrace" that the council had not already enforced payment of the businesses rates.

The letter issued by Cheltenham Borough Council said: "This notice advises you that your account is in arrears by £206,740. If payment is not made by September 2, 2025 you will be liable to pay the balance of the year's charge which is currently £413, 475."

It said legal action may be taken against Stanbury Estates in the magistrates court if it becomes liable for the years charge and is not paid by September 9.

A council spokesperson said no business rates exemption was in place for Cavendish House, and it had not been informed about the issue of unpaid utility bills, which would fall under the jurisdiction of the property's owners, agents, or tenants.

"Cheltenham Borough Council is not investigating these issues or engaged in any business dealings with Canada Life regarding this matter," they added

"Furthermore, the council does not own the asset, and we are unable to comment on the current status of business rates payment for any individual business."

It declined to comment on whether the business rates bill had been paid or whether legal proceedings had been started but said they would only be used as a "last resort".

A spokesperson for npower Business Solutions (nBS) said: "We understand that traders at Cavendish House in Cheltenham were concerned about the supply of gas to the property and we are working closely with Stanbury Estates to ensure there is no impact to business continuity.

"We are committed to supporting our customers and their communities and are pleased to confirm that a solution has been agreed."

None of the parties contacted said anything about Stanbury Estates no longer being responsible for bills at the property.

Punchline has contacted Centrica/British Gas and Water Plus, who is believed to be the provider for the building, to ask if their bills have been paid.

Mark Owen, editor of Punchline-Gloucester.com said: "The traders at Cavendish House pay their money in good faith and expect the property to be managed in a timely and professional manner.

"If this was any other business the council would never have allowed the business rates debt to accrue.

"Other rate payers probably feel enforcement action would have been taken much sooner to retrieve the money owed.

"This is an iconic building in the heart of Cheltenham and the way it is run needs to reflect the spirit of the town."

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