Firm blames tram work chaos for putting it out of business

Published on Tuesday 17 June 2008 10:24

A FAMILY-run business on Leith Walk today claimed it had become the latest victim of the work on Edinburgh's £512 million tram line.

Gas fire and heating retailer World of Gas, next to Pilrig Church, announced it is to close its doors after 28 years.

Owner Marlene Johnstone, who started the shop with her late husband Ron in 1980, said her business was fine until the tram works started last year and now weekly losses of a "four figure" sum have become unsustainable.

Business leaders today warned there were three or four other businesses around Leith Walk which were also on the brink of closure as a result of works to move utilities for the new tram line.

Tram firm TIE today refused to be drawn on the latest closure, but insisted there may be a number of factors behind the move.

But Mrs Johnstone, 50, who runs the store with son Gary, 26, said the losses she has incurred over the last year means she can no longer carry on.

She said: "It has just been horrendous over the last few months, it took us so long to build up the business and we were fine before the tram works started, but not since.

"On Leith Walk we depend so much on passing trade and also having some parking spaces, but both of these have been hit badly by the trams.

"We have had jobs booked but have had to cancel them because delivery drivers couldn't reach us. It is really upsetting because I wanted to hand the business over to my son when I retired."

A survey by the Federation of Small Businesses in February revealed two-thirds of businesses on Leith Walk have seen a "significant decrease" in the number of customers since work started in August last year.

It also claimed that 56.9 per cent of businesses surveyed have seen their turnover drop significantly.

Walker's ironmongery, on Leith Walk's Crighton Place, is also set to close later this summer after 32 years in operation.

Owner Alistair Walker claimed earlier this year that his trade is down 40 per cent since tram work got under way.

Gordon Burgess, a spokesman for the Leith Walk and Constitution Street Traders Association, said: "I know of three or four other businesses who are close to going under and they are all struggling in the face of the tram works.

"You can't get away from how difficult all this work is making life for people and it breaks your heart, especially when you consider World of Gas has been in business for nearly three decades.

"I don't think anyone is denying there are other factors at play here in terms of the slowing economy, but if there are no parking spaces near your shop then it is extremely difficult."

A spokesman for tram firm TIE said: "No-one likes to hear about businesses closing. There may be a number of factors involved and it would therefore not be appropriate for TIE to speculate."

A spokesman for the city's Chamber of Commerce added: "Our hope is that the various support schemes will help people weather the difficulties."