Sheffield Leadmill owner disputes refurbishment cost estimates

The owner of Sheffield’s Leadmill venue has leveled an accusation against its tenant, claiming the estimates for potential refurbishment costs are “absurdly overcooked”. Electric Group, the company that acquired the site in 2017, has been engaged in a two-year dispute with The Leadmill Ltd regarding the venue’s future, initiated by an eviction notice issued in March 2022. During a recent court hearing, the legal representatives for The Leadmill proposed that Electric Group would lack the financial resources required to complete essential renovation work if they were to assume control of the premises. However, Dominic Madden, the head of Electric Group, testified that the refurbishment figures presented by The Leadmill “seem illogical.” Information presented at the hearing indicated that Phil Mills, the venue’s current tenant, plans to “gut” the premises of its existing fixtures and fittings, including the dancefloor and stage, if compelled to leave the building. A report commissioned by The Leadmill’s legal team projected the cost to restore the venue to operational status at approximately £4.7m, though Mr Madden stated his belief that it was a “£2m project.” He further stated: “I still think that’s right, even with the future work required if Mr Mills decides to take things out.” Mr Madden disclosed that his business partner, Jacob Lewis, had committed to supplying up to £3m to finance any refurbishment. Mr Lewis, in his testimony, indicated that this sum “could be more.” Thomas Roe, representing The Leadmill, asserted that Electric Group’s financial records did not demonstrate their capacity to fund the refurbishment. In reply, Mr Madden declared the company to be “extremely profitable” and accused Mr Roe of portraying the business, which operates three additional music venues in England, “as some sort of dicey company with a fake balance sheet.” Mr Roe informed the hearing that Mr Madden was also “over optimistic” regarding the timeline for reopening the venue, following Mr Madden’s suggestion that it could be operational by September 2025. Mr Madden responded by stating: “The suggestion it takes years to do all of these things is just not the case.” He continued: “You are trying to present me as some sort of over-optimistic person for the purpose of this process, but I’m not.” He concluded: “We are funded, we are going to do it. We have got complete confidence that we can proceed with our refurbishment plan.” Addressing a proposition that Electric Group would capitalize on The Leadmill’s reputation “for a long time to come,” Mr Madden asserted they were “going to do something very different.” Previously, he informed the hearing that under his proprietorship, the venue “will be a slightly more polished, probably modernised, version of the same thing.” He elaborated: “It will still be hosting concerts and nightclub events [but] it’s different insofar as it’s plugged into a national network of music venues.” The Leadmill, which commenced operations as an independent venue in 1980, has featured performances by artists such as Coldplay, Oasis, Arctic Monkeys, and The Stone Roses. The hearing remains ongoing.