Union Street fire: Businesses warn they face 'drastic choices' as losses mount

Businesses warn continued disruption in the area is having a huge impact, with street closures expected to remain in place until early July

Nearly two months have passed since the Union Street fire, which destroyed the corner of a B-listed building in Glasgow’s city centre.

The blaze broke out in a vape shop near Central Station on March 8, tearing through a Victorian-era building that has since been demolished.

Glasgow City Council says work has begun to stabilise the gable wall adjoining the Central Station Hotel, which was exposed following the collapse and demolition of the building.

But businesses warn that continued disruption in the area is having a huge impact, with street closures expected to remain in place until early July.

‘We face drastic choices’

Network Rail via Supplied

Sebastian Batawicz co-owns pastry shop Pastéis Lisboa with his partner on Gordon Street.

He says they were unable to access the premises for four days before reopening – and they lost “almost 40% of turnover overnight.”

“We are struggling to be honest with you; it’s been really tough for us, and other businesses are all in the same boat,” he told STV News.

“We have lost all footfall coming from Central Station – you can see all the foot traffic is now going around.”

The council is administering a fund for affected businesses using the Scottish Government’s £10m recovery commitment.

The funding being offered to businesses is tiered, depending on how close they are to the affected building and the impact of the cordons.

Businesses destroyed in the fire can receive up to £25,000, those still inside the cordon up to £15,000, while firms that were within the immediate cordon in the days immediately after the blaze are eligible for £2,000.

More than £1.6m has been allocated so far.

Pasteis Lisboa co-owner Sebastian BatawitczSTV News
Pasteis Lisboa co-owner Sebastian Batawitcz

Sebastian estimates the £2,000 they received only covers a single day’s losses and says they still face paying business rates, which have been suspended for traders that remain inside the cordon.

“We will actually have to pay £2,700 a year. It’s basically kicking us while we’re still lying down.

“If this continues indefinitely, we will have to make drastic choices as a business.

“Inevitably, that would lead to some job losses. Our biggest concern is keeping employees in work and getting paid.”

‘We face closure if this continues’

Restaurant owner Elizabeth Ndungu.STV News
Restaurant owner Elizabeth Ndungu.

Elizabeth Ndungu says the fire had a devastating impact on her African restaurant, The Calabash.

“It’s depressing,” she said.

“When we came back, the stock was rotten. There was complete flooding, and all my fridges were not working. It was a huge loss for us, not opening for five days.”

She says the restaurant relies heavily on passing trade.

“People still don’t have the confidence because when they come up from Gordon Street, the road is closed – and there’s nobody to tell them there’s another access near the McDonald’s.”

The fire tore through the historic building on March 8.Garry McHarg
The fire tore through the historic building on March 8.
Work has begun to stabilise the exposed gable wall next to Central Station.STV News
Work has begun to stabilise the exposed gable wall next to Central Station.

She says the £2,000 grant is not sufficient to help them cover the cost of the damage.

“I have to pay staff, electricity. You can’t switch off electricity – it has to be on throughout, whether I have customers or not, or the bills have to be paid.

“I had to pull all my carpets out after the flooding. To do the fridges alone would cost me £3,000. It’s in very bad taste.

“This place is not only for business – it’s where our community comes together. If it continues to be unsustainable, we will have to close down.”

‘We lost £5,000 a day while closed’

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Staff at an anime and manga shop said it was losing around £5,000 a day in takings while it remained closed following the fire.

Bryce Salt says it took weeks for deliveries to get back to normal after stock was redirected away from the store.

But he says the shop has been luckier than others.

“We lost a fair bit of footfall, but we’re pretty close to what we used to be before the fire,” he said.

“We’re mostly a community‑based shop. We know a lot of our customers quite well.

“They go out of their way to frequent the shop to keep things not as harsh for us.

“We’re not back to 100%, but now it’s nowhere near as bad as when the fire happened.”

A spokesman for Glasgow City Council said: “Our business advisers continue to be available to speak to businesses affected by the Union St fire.

“This service has been widely promoted, and the team has been dealing with a high volume of inquiries from affected businesses.

“The Union Street Fire Recovery Fund has awarded £1.6m in financial support for businesses with a focus on smaller operators who rely on face-to-face contact with customers, such as those in the retail, hospitality and leisure sectors.

“The fund was not intended to act as a substitute for insurance cover, which is an essential element of SME resilience, especially if the business employs staff.

“Our business support team can liaise with insurers if required, and legal letters have been issued via our building standards team to confirm the extent of the safety cordon around the fire site.

“Work is currently underway to finalise a programme of non-domestic rates hardship relief for businesses affected by the fire, which will also focus on the retail, hospitality and leisure sectors.

“Further details will be made available as soon as possible.

“Non-domestic rates are set by the Scottish Government following an independent assessment of the rateable value of properties.

“The Union Street fire was a devastating incident that destroyed a major building and created a significant risk to public safety.

“The cordon around the fire site has been in place to protect the public and also to create as safe a working environment as possible for specialist demolition contractors.

“This work to stabilise the exposed gable wall adjoining Central Station Hotel is expected to be fully complete by early July.

“But we are hopeful that as work progresses the safety cordon can be reduced to allow pedestrian access around the site ahead of Union Street and Gordon Street re-opening for vehicles.”

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