Moon Jewellery owner Jo Soulsby is leading plans to bring businesses together in the prominent city-centre building on Silver Street, once earmarked for a major food, drink and entertainment venue.
The hub would house independent retailers, businesses hit by the Prince Bishops Place redevelopment and student entrepreneurs starting in the city.
Fourteen businesses have expressed interest in the project, which is being run by DH1 City Connect, a community interest company.
Jo has asked Durham County Council to help support it for a temporary lease with the building landlord after STACK surrendered its lease last week.
She said: “I’ve taken this proposal to the council. We’re interested in taking the lease over temporarily to see how things go.
“We want to create a hub that nurtures and brings together businesses from Durham City.”
“The retail landscape of Durham is changing massively. Hospitality is taking over at a rapid rate, and shops are losing footfall in favour of online.
“The proposed hub is based on a model that has proved successful around the world.
“With the support of Prof. Joanna Berry of Durham University Business School, and Dr Mary Nanyondo, High Street Project Lead, we have a real opportunity to turn Durham’s retail fortunes around, especially in these uncertain times.”
The plans come as Durham’s retail sector faces major change, with the £58 million Prince Bishops Place redevelopment set to disrupt city-centre businesses further.
The scheme, which received approval for revised plans earlier this year, will transform the shopping centre into a mixed-use development featuring retail and leisure units, student accommodation and new public spaces.
Construction is due to begin in 2027, and Jo hopes the former M&S building can provide temporary premises for affected businesses.
She is bringing together interested businesses and other stakeholders to get the project moving quickly.
Jo has urged other businesses to back the plans.
She said: “We need public and business support to revive this building. The council has been very supportive, and we need this idea to come to fruition.
“We hear all the time from customers that they want more places to shop in Durham, particularly independent stores like those found in York. While Durham has plenty of places to eat and drink, there simply aren’t enough shops to make a full day out in the city worthwhile.
“The redevelopment of Prince Bishops Place will leave an even bigger gap in Durham’s already limited retail offer. To help tackle this and bring back some of the vibrancy Durham enjoyed when M&S was at the heart of the city, DH1 City Connect CIC was formed to support local independent businesses and protect the future of city-centre shopping.
The hub could also help the next generation of business owners, with support from Durham University.
The plan includes space for student entrepreneurs to test ideas without immediately taking on the cost of a traditional city-centre shop.
Inspired by business hubs in major cities worldwide, Jo hopes the plan will support new independents and help established traders stay in Durham.
The project also comes at a crucial time for Jo.
Jo, who has run Moon Jewellery on Silver Street since 2015, is preparing to leave when her lease ends later this month.
She plans to move the business online while developing the proposed hub.
Jo warned that independent retail in Durham is “on the edge of a cliff” without new ideas and investment in the project and former M&S building.
The jewellery business owner is joined on DH1 City Connect by Julie Guyard, part of the team that installed IKEA in the North East and steered the Metrocentre, and Chris Isaacs, who has spent 14 years working in hospitality.
The plans follow STACK Leisure’s decision to abandon its proposal for a multi-level hospitality and entertainment venue in the vacant Silver Street property.
Approved in 2023, the STACK development was due to feature eight ground-floor street food traders, a seating area, bars, live entertainment space and a games area.
The project suffered repeated delays, with STACK blaming unforeseen costs, planning and legal processes, infrastructure demands and pressure on hospitality businesses.
He said: “Rather than continuing to delay progress on these sites, we believe it is in the best interests of both Durham and Whitley Bay to step aside and allow alternative providers to come forward.”
STACK’s withdrawal has left the large city-centre building’s future uncertain, but Jo sees a chance to help Durham’s independent businesses.
Durham County Council is discussing the site’s future with its owner and agents, but says it would prefer an established retailer to take the property.
Mark Stamper, the council’s head of place, planning and growth, said: “While we are disappointed by the news that STACK is no longer able to take forward its planned development in Durham, we remain committed to supporting investment in the city and are in discussions with the owner and their agents regarding the best use of the site.
“While end use is ultimately a commercial decision for the owner, the focus needs to be upon the best outcome for the city in the longer term and, for this reason, we believe the priority for that large unit should be established retailers who can continue to provide a major retail anchor in the city centre without the need for significant subsidy from the council.
“We also remain committed to working with independent retailers to explore solutions to their needs.”