Crawley's John Lewis in doubt?

Concern hangs over the future of a £750 million development package for Crawley following reports in the national media that its flagship store's expansion plans have been credit crunched.

Retail giant John Lewis has confirmed it does not know when eight of its planned new branches, including the Crawley store, will go ahead.

And according to the Financial Times, the firm's expansion plans have been hit by developers suffering in the economic downturn.

Proposals for the Town Centre North (TCN) development include a massive overhaul that will see £750 million of investment poured into Crawley, creating 3,000 new jobs and transforming the town centre.

Cllr Claire Denman, Cabinet member for Planning and Economic Development, said the department store was still 'very far from pulling out' ? despite news that eight of the sites John Lewis had in the pipeline could be delayed.

She said: "I spoke to John Lewis last Friday and I know there has been a press release and story, which appeared in the Financial Times recently.

"Basically they are saying they are having to move away from some of their schemes, but mainly they are pulling away from some of their bigger schemes.

"But for us at Crawley Borough Council it is still very much business as usual. John Lewis are still committed to our scheme and its still going full steam ahead.

"At the moment a lot of companies are feeling the jitters, but John Lewis still have confidence in Crawley.

Developments on this scale take time but we are still working closely with the developers at a time when many town centre schemes across the country have collapsed.

"Redeveloping the town centre remains a priority for the council."

Developers Grosvenor said: "In common with all developers of large retail led projects in the UK the current economic climate has created additional challenges but we are still committed to Town Centre North and are currently in discussions with Crawley Borough Council on the method and timetable for delivery of this major urban regeneration."

Leader of Crawley Borough Council Bob Lanzer said: "We are still partners and are still in discussions with John Lewis. "Of course in these economic conditions some of those developments take longer but we are still committed to getting John Lewis now.

"The time scale or the design of the development could change. Other schemes around the country have made a complete withdrawal but that is not the case here."

A spokesperson for the firm said:"John Lewis has expressed an interest in opening a shop in Crawley within a scheme to be developed by Grosvenor.

"Agreement for Lease has not yet been exchanged for Crawley."

Source - West Sussex Gazzette (website) article published 04.02.09