Council vowed to block hotel construction over unauthorised Princes Street gift shops

City of Edinburgh Council’s building standards officials chased tenant Kitfox Limited for nearly a year over its failure to secure building warrants for the shops.

Princes Street was closed for seven weeks as a result of the fire. <i>(Image: City of Edinburgh Council)</i>

(Image: City of Edinburgh Council)

Council officers threatened to block future redevelopment at the former Debenhams building on Princes Street over the unauthorised use of the premises by four gift shops, The Herald can reveal.

Documents obtained via Freedom of Information request reveal how City of Edinburgh Council’s building standards officials chased tenant Kitfox Limited for nearly a year over its failure to secure the permissions required to open the shops, located at 109-112 Princes Street and 144-150 Rose Street.

In March 2026, the council informed landlord Zedwell Edinburgh that future works to convert the building into a hotel would not be approved if the shops were not removed by the tenant.

Four months later, a fire broke out in the building, shutting down Princes Street and cutting off tram access to the north and east of the city for seven weeks.

The blaze on Edinburgh’s Princes Street shows the fire service “can’t face any more cuts”, the union representing firefighters has said.A fire took place at the building on July 9, 2026. (Image: Jane Barlow)

A March 9 email sent by the council to a redacted party, understood by The Herald to be the building’s landlord, states:

“It remains open to your tenant to regularise the unauthorised works by securing acceptance of the Completion Certificate Where No Building Warrant Was Obtained (CCWNBWO)

“However, no further stages of the building warrant application for conversion to hotel use will be approved until all works contained within the Kitfox submission have been completed to the satisfaction of this council and a completion certificate has been formally accepted.”

The email notes that a completion certificate application was submitted by the tenant on August 22, 2025.

However, the council found that “the information provided was insufficient to demonstrate that the works complied with the Building (Scotland) Regulations 2004”.

Previous correspondence sent to the landlord in October 2025 states: “As a building warrant provides consent for the works contained therein to proceed, we will only grant any subsequent stages associated with the conversion to a hotel where all the proposed works demonstrate the building regulations have been met.”

The council first contacted the tenant about the lack of a building warrant six months prior, on April 4, 2025.

The row of gift shops as pictured in August 2025. (Image: Michael MacLeod/Edinburgh Minute)

An email viewed by The Herald states: “We are writing to you as we understand you are the owner of the four shop units operating as House of Treasure, Edinburgh Gift Vault, Kingdom of Treats and Refill at the above addresses.

“A building warrant should have been obtained for the construction and conversion of the former Debenhams retail unit into the shop units referred to above.

“A copy of this letter has also been sent to the building owner, Zedwell Edinburgh

Limited.”

According to case notes compiled by a council officer, a number of further attempts were made to secure the certificate.

“No response to email sent on 4 April,” a system entry made on May 7 reads.

“Had a telephone call with [REDACTED] of Criterion Capital emphasising the need for action in relation to the four shop units. Subsequent call received from [REDACTED] who is assisting the shop operator to submit a CCWNBWO and advised a submission will be made on Friday 9 May.”

A system entry made on May 29 adds: “Teams call with [REDACTED] who is from the architects leading on the main development. [REDACTED] confirmed they were asked to get this matter addressed and was pulling information together to submit a CC early next week (w/c 2 June).”

However, nearly two months later, on July 18, the situation was still not resolved.

A system entry notes: “Telephone call with [REDACTED] confirming CC being submitted today. There was a break down of communications with Kitfox which is why all the documentation was not provided as previously stated. [REDACTED] also confirmed they are supporting Kitfox to get this matter resolved.”

The shops had changed names by the time of the fire. (Image: NQ)

A fourth note, made on August 13, states: “Returned from leave and no CCWNBWO yet submitted. Left voicemail message with [REDACTED] requesting update ASAP.”

This timeline is corroborated by a series of emails between the council and Kitfox’s agent, a representative of Coventry-based construction firm OM Group.

A July 25 email sent to a Building Standards officer by the agent states that the certificate was submitted but “the portal would not let me make payment”.

A follow-up email on August 18 similarly states: “I submitted the application several weeks ago…

“I'm keen to ensure that enforcement isn't carried out against the freeholder for mistakes by the tenant.”

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A third email sent by the agent, confirming submission of the certificate on August 22, reads:

“Just to confirm our last conversation too - all of the shops will be removed from site in early 2026 to prepare that area for the full refurbishment works required for the new development.”

However, the gift shops were still located at the site at the time of the fire on July 9, 2026.

The Herald previously reported that the application is still listed as ‘pending consideration’ on the council’s building standards register.

However, Kitfox Limited relinquished control of the shops sometime in the spring or summer of 2026, passing liability for the payment of non-domestic rates to a different company, Bwn Beverage Ltd.

Kitfox Limited was dissolved by Companies House on August 11, 2026.

Criterion Capital, the parent company of Zedwell Edinburgh, did not respond to a request for comment.