Plug pulled on The Grand after five years
The “Grand” plan welcomed for Cathedral Square has come to an end after five years.
The battle by business Darin Rainbird to open The Grand, an ambitious hospitality and tourist complex in Christchurch’s heritage central post office, has hit its final brick wall.
Investment in the project came partly through crowd funding.
Landlord Gordon Chamberlain took back the keys to the building on Thursday afternoon, after Rainbird repeatedly sought extensions to fill a large funding shortfall. The extra funds were to finish fitting out the building and open the doors.
Chamberlain is now seeking alternative tenants.
“Darin Rainbird advised yesterday that he has run out of funding options, and has now passed over the building keys to my building manager,” Chamberlain said yesterday.
He said he had given Rainbird extra time to find extra investors as he supported the project, and had not charged him rent. “I tried my best to help out, but as you will appreciate it’s an expensive building to own with rates and insurance that I am paying.”
In an agreement between the two, Rainbird’s company, The Grand Cathedral Square, was to begin paying rent when it opened the doors.
The project was to have included a restaurant, cafe and bars, a visitor information centre, an artisan bakery, a patisserie, a florist and gift store, and a South Island food tasting experience promoting local wine, beer, cheese and meat.
All were to have been part of The Grand business, rather than run by individual operators.
A large number of people invested money to fit out the premises and launch The Grand, which drew much public approval as a way to help revitalise Cathedral Square. Many invested through crowd funding in return for company shares or voucher schemes, and workers on the site are among the shareholders. Rainbird remains the majority shareholder.
Senior staff were also hired, including an executive chef who later left to take up a position overseas.
In June, Rainbird abruptly closed his Akaroa business, a Post Shop and i-Site.
This followed the closure in May of Rainbird’s Christchurch i-Site, which he ran inside the Novotel Hotel. The i-Site was meant to have been part of The Grand.
Original financial projections for The Grand were for annual revenue to build to $16.5 million and profit to $3.71m by 2025, and to $18.1m revenue and $4m profit by 2027. A full year’s rent once fully open would have been $789,000.
Chamberlain repaired and restored the 1879 Cathedral Square building after the earthquakes, with the help of a Christchurch City Council heritage grant.