Discount giant Poundland has spent around £500,000 on a retail unit in Hinckley that it left two and a half years ago.

The firm is yet to sell on the lease for the unit in The Crescent meaning they still have to pay rent and other costs.

Poundland left the premises after merging with Guess How Much  and moving into its larger unit next door in March 2017, keeping the Pep and Co clothing range.

The rent for the vacant lot is £136,175 per annum with current business rates of £57,960 plus additional service charges.

Letting agent Morgan Williams has been struggling to find a tenant for the unit since Poundland moved next door, blaming a ‘rock bottom’ commercial property market in the area.

Coventry Building Society is planning to open a new branch in The Crescent complex in Hinckley.

A representative for the agency, which also handles properties for Argos and McDonald's, said the discount chain may have to offer a premium to incentivise another company to take on the space.

However, they said it is quite normal for a business to leave an outlet unused rather than take on the full costs of running a shop which may not turn a profit.

They said: “There are plenty of other instances where it’s more economic to stop trading but continue to pay the rent and service charges.”

There are several other vacant lots in The Crescent at the moment, including two closed restaurants and a number of units that have never been used.

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Hinckley and Bosworth Borough Council owns the block in the shopping centre that was formerly home to Italian restaurant Rossini, which has been shut since an arson attack in March 2019.

The authority recently said talks are underway for another restaurant to take on the two-storey outlet.

Coventry Building Society has planning permission to fit out an as yet unused Unit 4A, between Belvoir estate agents and the closed Louisianna Chicken restaurant.

The approved proposal includes installing a cash machine outside the branch, which would add to the two ATMs already in The Crescent outside Sainsbury’s.

The society already has a branch in Regent Street in the town.

A representative told LeicestershireLive in July 2019: “We’re investing heavily in our branches across the country and that includes in Hinckley. We’re pleased planning permission has been granted.

“This allows us to consider our options before we decide how best to invest in our Hinckley branch.”

Poundland was contacted for comment.