Business leader David Richardson from the Federation of Small Businesses (FSB) warns that smaller firms need help now as the cost of living crisis worsens with the closure of Rose Street Foundry in Inverness
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A warning of an “extremely difficult winter ahead” has been made by a business leader following news the Rose Street Foundry pub is set to close this week.
Sam Faircliff, the managing director of Cairngorm Brewery which ran the city centre venue, cited rising energy costs and the cost of living crisis as the reasons behind the closure.
Speaking to the Courier yesterday, David Richardson, regional development manager for the Federation of Small Businesses (FSB), said it was very sad news for Inverness and a tragedy for the Cairngorm Brewery – particularly as it is caused by global events well beyond the control of any business. He added: “However, closures are not unexpected.”
He said rising costs would hit businesses, adding: “We have a long and extremely difficult winter ahead and smaller businesses need help right now.
“FSB is calling for the introduction of a range of measures to ease soaring costs, such as reversing the hike in National Insurance, cutting both VAT, especially on non-domestic energy, and fuel duty, and ensuring that small, independent businesses get the same protection as households.
“During the pandemic, both governments used grant support to keep countless smaller businesses alive. Not all the money was spent, and FSB is calling for the residue to be used to help keep businesses going until what we hope will be an easier spring.”
Inverness-based economist Tony Mackay said he had visited Rose Street Foundry and he was not surprised by the decision.
However he said: “In marked contrast, however, I am very surprised at the number of new pubs and bars which have opened recently in Inverness.
“The latest two examples are the Highlander and Jimmy Badgers, both on Church Street. There are also bars in the new hotels which have opened this year in the city centre.
“They do not attract local customers but must reduce visitor business for other places. Consumer spending has fallen significantly in Inverness in recent years, because of the various coronavirus pandemics and now because of the energy price rises for local residents.
“There are a lot of empty shops in the Eastgate Centre and elsewhere, so unfortunately I also expect more bars and pubs to close in the near future.”
Inverness MP Drew Hendry said: “This is devastating news for Sam, the team and for local residents. I know how much the entire Cairngorm Brewery team put into making the Foundry a success. They overcame so many adversities to get the business up and running and then, no sooner opened the doors than the pandemic hit them and now the cost of living crisis.
“Naturally, I have spoken with Sam to help in any way I can, and the hope will be to secure a buyer for the business to ensure locals can enjoy this terrific building and to protect jobs.
“Due to the current inaction on energy prices, the sheer cost of keeping businesses and venues open is very worrying to local businesses. We need an emergency package of support for both businesses and households, and that is exactly what I will be calling on the new Prime Minister to deliver.”
Inverness BID director Lorraine McBride said: “We are saddened by the closure of the Rose Street Foundry. Our businesses in the city centre help to directly sustain our communities by providing the employment, goods and services and people-to-people interaction we all need yet they are having to absorb uncapped energy costs at what was an already challenging time for many.
“There has been a vacuum of leadership and action by the government but the time to act is now. We are calling for an urgent package of covid-style support in the form of grants and other measures such as a business energy price cap to be put in place immediately. We as a community can also help by opting to keep our money within our local economy and spending in our national and independent outlets in the city centre when possible.”
The pub was in a former ironworks in Academy Street and created 40 full and part-time jobs.
It opened following extensive refurbishment in March 2020 but was forced to close shortly afterwards due to the Covid-19 lockdown. The refurbishment was made possible with a £960,000 grant from the Inverness Townscape Heritage Project as well as investment from the brewery.
Ms Faircliff said: “It is with a heavy heart that we have taken the decision to close the doors at Rose Street Foundry. We purchased the historic, yet dilapidated, building and spent two challenging years carefully restoring the listed building with the support of Inverness Heritage Trust together with our own investment totalling £2.2 million.
“Unfortunately Covid-19 struck just days after opening and now, like the rest of the industry, we are faced with escalating staff and energy costs and a cost-of-living crisis that is impacting the money people have to spend on leisure.
“While I am devastated for the team, who worked so hard to develop and open the building, I am really proud to have restored a building that is a true gem in the city. Cairngorm Taverns, who own the freehold of the building, and I will now work tirelessly to find a new tenant for the premises.”
