The Amber Tree Café and other high street news

Meet Jolanda and Virginia at the Amber Tree Café, a new delightful new addition to the south of the high street (number 45). Proprietor Virginia is Lithuanian and the cafe has got off to a great start, offering a varied lunch and breakfast menu (eat in or takeaway) at very reasonable prices. Virginia says all their food is handmade, freshly produced and uses only natural ingredients, and the cafe's speciality is their amazing homemade cakes, which include gluten free, dairy free and eggless recipes.

Co-incidentally, you can watch a live performance of traditional Lithuanian music at 1pm on Saturday 27th at the Deptford Lounge. Part of Deptford X festival, more info here.
 
Amber Tree has replaced the ill-fated Slices pizza restaurant which set up shop around the same time as the Pizza Bus down the road – the latter may have usurped Slices' USP. In a similar manner, the lovely Lithuanian women's lunchtime trade may about to get unwanted competition. A couple of doors down, the former Abermarle & Bond is now being refitted, and the builders have told us it's to become a new (franchised) branch of Subway, the bread-based food outlet that seems to be set on massive expansion.

At least it's not another pawnbroker. However, Subway don't offer hot meals and homemade cakes like Amber, or spicey Caribbean bites and breads like the great Chaconia bakery opposite, but the new store may give Percy Ingles another two doors down – and Greggs up the road – a run for their money.

Abermarle & Bond went bust earlier this year after the price of gold dropped dramatically last year (although their main trade was in Pay-Day loans). When the branch opened in late 2011 it became the fourth pawnbroker on the high street in a betting-shop-and-pay-day-loan cluster, as we reported at the time.

A later addition to the cluster was Cash Converters which took over the old Halifax premises, after locals campaigned against it becoming a Betfred (and which the Council managed to stop due to an unusual planning clause that applied to the building). But along with Abermarle & Bond, the Deptford Cash Converters branch has now inexplicably closed, having denied earlier in the year that their "Big Sale" was a "closing down sale"...

Pawnbroker update: Want instant cash now? YOU BET!

Last month, our appeal-wary planning department were obliged to give permission for Change of Use to the fourth pawnbroker on Deptford High Street. Abermarle & Bond's new premises is opposite Ladbrokes, William Hill, and another pawnbroker, The Money Shop. It is quite near Paddy Power and Better, and not far from three other pawnbrokers – in fact there will now be four pawnbrokers within 50 metres of each other.

However, as the Dame recently pointed out, Lewisham Planning did not grant permission for them to change the shopfront, and asked them to apply separately for this. But barely a day had passed after Change of Use was granted (from Sui Generis to A1 Retail) before Abermarle & Bond had set about refurbishing the shop. The shop is almost ready to open (the picture above was taken last week). The target date for their application to be decided is 27th December 2011, but a new shop front is already in place – in time to cash in on the Christmas trade.

The applicant's flagrant disregard for local planning rules is also demonstrated by the distribution of leaflets in the local neighbourhood which confirm the fact that they are first and foremost a Financial Service and NOT a retail outlet:  "Say NO THANKS to banks" "Quick cash loans" "No hassle and no credit checks" APR: 581.9%.

Pawnbrokers are classed as A1 Retail as long as the other services they offer (cheque cashing and pay day loans) remain ancillary to the main use as pawnbrokers/jewellers. But selling jewellery is now a small part of the service since people are selling and pawning their gold rather than buying it.

The Telegraph reported four days ago that Abermarle & Bond said the value of gold it had bought off customers had increased by 83%, adding that the market for retailing gold jewellery remained very weak. It continued to prefer to scrap second hand jewellery if this generated a better return on capital.

Cash loans on jewellery are often third on an advertised list of services, after Pay Day Loans and Speed Loans. Pawnbrokers are no longer simply a place to get a quick cash loan on some jewellery or prized possession, but have instead become extremely aggressive loan sharks. They are part of the cycle of poverty, and not, as they claim, any part of the solution – since a high interest loan can easily spiral out of control, especially when the lender is situated in the immediate vicinity of bookmakers. Abermarle & Bond's advertising "Want instant cash now? YOU BET" is a not very subtle nudge.

Pawnbrokers are also extremely poorly regulated and monitored, hence their nickname "robber's shops" (no pun intended) – who knows where the gold they are buying has come from? And they inevitably set up shop in poor areas where there is a desperate need for cash and people have no credit ratings. Abermarle & Bond's financing is by Speedloan Finance, a sub-prime small loans company specialising in making loans to people who have difficulty maintaining repayment schedules.

We need better alternatives to banks and better solutions to debt management than this new breed of pawnbroker can provide. Like the betting industry, the corporate pawnbrokers are set on a massive expansion in – or, rather invasion of – Britain's poorer high streets, aiming to make huge profits from the recession.

Their present DUBIOUS planning class as A1 Retail (because they sell jewellery) allows them to pop up wherever they like – usually next to bookmakers (for obvious reasons). Local authorities across the country are unable to turn them down in the shopping areas they have designated to be RETAIL ONLY (that is, not Financial Services).


Joan Ruddock MP is leading the fight to stop the corporate Betting Shops by attempting to introduce a Bill to give them a Planning Class of their own. The same should be done to curb the invasion of sub-prime loan sharks masquerading as jewellers. Write to your MP now!

See previous post on Abermarle & Bond here.

Betting shops and pawnbrokers again

(The vile) BETFRED

We regret to inform you that Betfred are back for a battle over 93-95 Deptford High Street. They have reapplied to Lewisham planning for permission to enable the premises to be occupied by any Class A2 use, including a betting office. See the application DC/11/78506/X and Betfred's covering letter here.

At the end of March, Lewisham Planning turned down their application to alter the then current planning class (A2 Financial) to lift the condition on it that said it was only to be used as a Building Society. Betfred then appealed to the government Planning Inspectorate.

On August 16, the government Inspector decided to lift the special conditions on the A2 Financial use – since there had not been a Building Society there for some time anyway (the Halifax had been a bank since 1997). However, he decided to allow all A2 uses but then applied a new condition to preclude its use as a betting office. 

This conclusion was based on the objections provided by local people and the police and their reporting of the high level of antisocial behaviour created by already existing betting shops (see extracts from the inspector's report at the bottom of this post). Although the inspector agreed the proposed betting office would occupy an empty unit and create jobs in line with national planning policy for sustainable economic growth (PPS4), he stated "there is no indication that this is the only viable use of the premises or of the employment that would be generated. Since the main aims of PPS4 also encompass safe environments, these factors do not outweigh the harm identified."

Betfred are now whining on about how the antisocial behaviour going on at other betting shops is not a good enough reason to disallow their own presence, arguing that the imposition of the new condition by the government inspector is unreasonable.

Objections need to be put in again. If you objected last time round this new objection can be an updated version of your old objection (with the date and application number altered), or a new letter that refers to your previous objection. Address it to planning@lewisham.gov.uk – the planning officer in charge is Russell Penn. We have up until the beginning of December to get in objections but don't delay!

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ALBEMARLE & BOND Pawnbrokers

Deptford Nightlife: the view from 37 Deptford High Street: three betting shops and another pawnbroker within spitting distance.

Three objections went into planning to oppose the pawnbroker Albemarle & Bond setting up shop at no.37 Deptford High Street (directly opposite another pawnbroker and two betting shops, and only a few doors down from two other pawnbrokers and three other betting shops). This many objections should have resulted in the application having to go before the Planning Committee, but it appears the planning department asked the applicant to withdraw part of their application, which was in essence a request for change of use but included drawings for a new shopfront. The planning team requested these to be submitted in a separate application. They were then obliged to allow the change of use from "sui generis" (no particular class) to "A1 Retail" as befits the council's own core retail strategy, and because pawnbrokers fall under the "Retail" classification.

Although the applicant may now set up shop, they may have difficulty getting permission for their modern branded shopfront. (See our previous post on Abermarle & Bond).

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Extracts from the Planning Inspectorate's Appeal Decision on Betfred in August 2011:

21. Just because there may be problems in connection with other betting offices does not necessarily mean that these would be repeated in conjunction with Nos 93-95. The appellant company suggests that this could lead to a greater dispersal. However, this is a large unit and presumably it would not open unless the operator was satisfied that it would generate sufficient custom to make it profitable. If the appeal were dismissed then the current state of affairs would remain but, to my mind, an additional premises would simply add to problems and should not be supported.


22. Consequently the proposal would be likely to increase anti-social behaviour and 
disturbance although the implications for crime are less certain. The appellant company is critical of the Council for referring to the potential for harm to be caused in this respect rather than expressing certainty. It seems to me that it is not possible to be categorical but that the weight of well-informed evidence suggests that this outcome is likely to materialise. Put another way, it would be foolish to ignore the convincing accounts given or to assume that they would not be repeated in association with the proposed betting office.


23. As a consequence the proposal would make the High Street a less safe place 
for residents and other users of the town centre. In this way there would be a broad conflict with the intentions of criterion (d) of Policy STC4 of the Unitary Development Plan and also with the aims of PPS1. The same would not necessarily be true of every betting office but it is the conclusion in this case based on the evidence about existing operations in Deptford High Street.

See also Deptford Misc for more of the report, and, for a simple digest go to Deptford Dame.

Yet another pawnbroker for Deptford High Street

Albemarle & Bond have put in a planning application for 37 Deptford High Street. The company is 29% owned by Ezcorp, a US company that "acquires, establishes and operates pawnshops" and is just one of the many businesses profiting from the recession. Their corporate website boasts that business has grown substantially, with an aggressive expansion rate of 25 new stores opening per year.

They see an increased demand for their services "since high street banks have reduced lending levels, making it harder for individuals and small businesses to access loans. As a consequence more customers are experiencing the ease and simplicity of accessing short term, flexible loans via our stores." (albemarlebondplc.com). According to the National Pawnbrokers Association (NPA) there are about 800 pawnbrokers in the UK and this number is set to grow at 10% per annum.

A&B's pre-tax profits surged by 75% in the second half of 2009, despite a 5% decrease in retail sales due to a reduced demand for gold jewellery as more people pawn or sell their jewellery rather than buy any. Higher gold prices also helped to boost profits. "Consumer awareness of the higher price of gold and difficult economic conditions are creating increased demand for short term cash." The following six months saw a 48% increase in turnover, and although early this year there was a 1% drop as they funded their ambitious store expansion, by May 2011 their "pledge book" (the pawnbroking side of business) had risen 24% over the previous year.

Meanwhile, Signet (parent company of H Samuel and Ernest Jones jewellers) reported UK sales were 'flat' at 0.2%. These high street jewellers do not offer other services except repairs and fittings (although they do buy gold online).

On the website of Albemarle & Bond's rivals H&T Pawnbrokers – at no.72 Deptford High Street, next door to Coral the bookmaker – the cost of their pawnbroking loans is clearly spelt out: they will charge £144 on a £300 loan over 6 months which they claim is an APR of 119% (we make it an APR of 150%?).

Over at Fish Brothers – a couple of doors down near Paddy Power – we find a monthly interest rate of 6.5% for loans of £5–£999, supposedly an APR of 93%. They also give examples, which make the whole business look quite agreeable: only 50 quid to pay on a £2K loan over 15 days with a diamond ring as collateral. Only 12 quid on a £100 loan over 2 months with a gold bracelet as collateral. Only 36 quid to pay if you borrow £5500 for five days! Amazing.

What rates can we get at The Money Shop (in between Ladbrokes and William Hill)? At their yellow & black website, the only rate advertised is the special offer on PayDay loans: £90 over a month will cost a tenner instead of the usual £17, with an APR of 260%. The Money Shop is also a pawn broker but doesn't pretend to sell jewellery.  

Albemarle & Bond (who aim to be across the road dead opposite The Money Shop) are not as forthcoming about their pawnbroking rates as their competitors. But on an equally gawdy yellow and black website they advertise a typical APR on a £1000 loan as 281.5%.

With so much building going on in the area, they must be anticipating an increased market in cheque cashing and payday loans. Branding wise, A&B, in its use of the same garish yellow as The Money Shop, appear to be competing directly.

A bank loan is much cheaper than a pawnbroker loan, but banks generally don't lend small amounts except as overdrafts which can be expensive. Pawnbrokers like to say they perform a valuable function for people struggling on benefits or low wages, those who don't have bank accounts or can't get overdrafts, those with a bad credit history or with county court judgements against them. But a member of staff at Deptford & New Cross Credit Union (165 New Cross Road  SE14 5DG, 020 7277 7477) told us that often some of their members have joined the union to borrow money to pay back a pawnbroker loan that has spiralled out of control. The not-for-profit Credit Union has all sorts of members, both working and unemployed, who may access cheap loans at 1 or 2 per cent. Unfortunately the Credit Union cannot provide on-the-spot loans (a loan may take ten days to set up).

Hogarth captures the scene outside Paddy Power and Ladbrokes (Wikimedia Commons)

Pawnbrokers have always had a place in the high street, but do we really need four of them within spitting distance of each other? It doesn't help that the main Building Societies keep closing branches but at least banks and building societies are regulated to some degree. Although pawnbrokers are required to ask for ID when they lend and buy, it seems they have to be reminded to be vigilant about receiving stolen goods. According to a news report in the Evening Standard in August, robberies had leapt by 18% in the previous three months resulting in Cash Converters signing a deal with the Met to exchange information.

Meanwhile, the intended site of Ablemarle & Bond is far from ideal: opposite two bookies and a 'money shop', within a 150m stretch that has five bookies and three money lenders. It's no coincidence that betting shops always seem to be accompanied by pawnbrokers. Here's the cluster:

70: Coral
72: H&T Pawnbrokers
60: Fish Brothers Pawnbrokers
52: Paddy Power
48-50: Ladbrokes
44: The Money Shop Pawnbrokers
38-40: William Hill
37: Albemarle & Bond Pawnbrokers
14: Better

Albemarle & Bond are applying for change of use. The shop used to be an amusement arcade and was not classified – arcades and theatres among others are 'sui generis' (of its own kind). It is likely the amusement arcade suffered with the increase in the number of betting shops full of slot machines. A&B's application is for A1 Retail use.

A&B know this part of the high street is a Designated Core Retail Area and are at great pains to emphasise that their main business is Selling Jewellery – even though they admit in their own reports that there is a big reduction in retail sales and their website plays down the retail aspect: "Our high-street pawnbrokers specialise in a range of pawnbroking services, gold-buying, pay day and short-term loans and offer a range of quality pre-owned and new jewellery through convenient locations across the country...Our friendly and experienced staff can help you manage your finances or find the perfect gift."

The amusement arcade as was...run out of town by the betting shop slot machines?

Just as the bookies take advantage of planning laws that enable them to easily take over pubs and estate agents (A2 class), pawnbrokers are classed as A1 as long as the cheque cashing and similar activity remain ancillary to the main use as pawnbrokers/jewellers. But who's going to check?

As Albemarle & Bond open more and more retail outlets (like Paddy Power and Betfred), in areas where property is cheap and punters are desperate for cash, they have modernised their shopfront design. Retail-jeweller.com reported in February 2011 that A&B were "rolling out a new fascia across its portfolio as it looks to revamp its image as its retail sales fall in the face of soaring gold prices." (Yet more proof that they are not primarily retail).

And A&B's new logo now features the word "Bond" more prominently – because, according to CEO Barry Stevenson, their "customers have difficulty saying 'Albemarle and Bond'".

How will this modern design go down with the planners? The proposed internally illuminated double sided projecting sign reading "We buy gold any condition" jutting out from the bright yellow fascia illuminated by a continuous strip light doesn't exactly conform to the guidelines issued by Lewisham relating to those properties considered as heritage assets. This is not a listed building, mind, but it is in a conservation area. A&B want to replace the present timber framed shopfront (which has panelled pilasters and stallrisers) with a modern aluminium frame so that the shop looks like all their other branches and pays little attention to Lewisham's Shopfront Design Guide which requests that traditional materials must be used in conservation areas.

If you feel compelled to write an objection, you may want to emphasise the unsuitability of the proposed shopfront design in a conservation area. This may carry more weight than arguing that Albemarle & Bond are not really retailers, or that we've already got enough pawnbrokers, or that this particular site is not suitable due to its proximity to a cluster of betting shops...Objections must be in to Lewisham by 4th October 2011. See the application here and the documents here.

Sign of the Times by Adam Vass, to be featured in Deptford X at The Bird's Nest pub (click to enlarge)

Debt Advice
Crossfields residents may be interested to know that Lewisham Homes have teamed up with the Financial Services Authority (FSA) and their Moneymadeclear service to provide residents who need debt advice the opportunity to speak face-to-face with a trained money guide. They can provide impartial information and guidance with no fees. Call 0300 500 5000 or Lewisham Homes 0800 028 2028 (free from landline)/020 8613 4000 (if calling from a mobile) or go to  www.moneymadeclear.fsa.gov.uk.

Debt advice is also available at 170 Community Project in New Cross Gate (170 New Cross Road, 020 7732 9716). Unfortunately the Deptford Citizens Advice Bureau no longer exists – Catford Citizens Advice 0844 826 9691 (5p per minute) is the nearest within the borough.