Concerns about the financial stability of a shopping centre in Elgin which closed last month should have been raised to councillors earlier, a committee has heard.

The St Giles Centre had operated for 33 years, but closed on 20 January at relatively short notice, creating uncertainty for both traders and shoppers.

The centre was home to major stores including EE, Vodafone and Waterstones but was in dispute with Moray Council over business rates.

The council’s audit committee heard financial concerns about the shopping centre should have come before full council earlier, to allow councillors to fully consider the situation.

An internal audit was carried out into the circumstances.

The committee heard a repayment plan had been agreed with the centre owners in 2022 but debt recovery enforcement proceedings were later initiated.

It was announced on 8 January that the centre would close two weeks later.

Committee chairman Scott Lawrence said: “The audit trail of available emails, reports, discussions and decisions show senior officers were aware of the economic and social importance of St Giles Shopping Centre and considered the implications any potential closure could have as a result of debt enforcement.

“Committee agreed with the report finding that concerns about the financial stability of the St Giles Centre should have been raised with full council at an earlier date to afford councillors the opportunity to consider all the challenging details of the situation.”

A recommendation to improve record keeping and monitoring of any similar decisions was agreed for all similar cases at a much earlier stage in future.

BBC Scotland News told last month how the majority of businesses left without a home when the shopping centre closed were staying or hoped to stay in the town.

Three of the 15 businesses which used St Giles no longer expected to have a presence but most hoped to continue operating locally in some shape or form.

Moray Chamber of Commerce said it hoped the relocations could actually help the town centre thrive in the longer term.