Struggling Saddlers Centre a costly problem for Walsall Council

Mike Bird said the authority was likely to be stuck with the shopping centre, bought by the previous Labour administration with a huge loan, which he believes is doomed to failure.

Profits at the Saddlers Centre have slumped to less than £200,000 since the council took it over - much less than predicted by Labour leaders when the deal was agreed.

The centre suffered a huge blow with the loss of flagship store Marks & Spencer and the disappointing performance has raised questions about the decision take out a £13.8 million loan to buy it.

A report to the council revealed the estimated annual profit at the centre was between £164,000 and £184,000, way below the £500,000 figure quoted by then-leader Sean Coughlan for the first seven months of council ownership.

Councillor Bird has not ruled out trying to sell the Saddlers but believes it would be difficult to find a buyer with profits relatively low.

He said: "We are actively looking at it and it is on the agenda for discussion. We are not seeing the income that was proposed and now M&S has pulled out.

"We have had some success filling vacant units but the whole shopping offer in Walsall is in decline because of a lack of footfall."

Asked if he believed the fortunes of the Saddlers Centre would improve, he said: "No I don't, unless we get some anchor sites.

"We need to look around and see what is attracting customers. We are down the bottom and need to lift our game.

"We need to look at the whole issue and the perception people have of the town centre."

Labour has insisted the purchase of the Saddlers was a 'good investment' as it is making the council money.