A NEWPORT businessman says he is thousands of pounds out of pocket because he never received compensation for relocating his shop to make way for the city centre redevelopment.

David Meek, who runs AG Meek, at 176 Upper Dock Street, says he was asked to move his store from its original location near the bus station at number 28, under a compulsory purchase order (CPO) to allow for the proposed Friars Walk development to go ahead in 2008.

Mr Meek, 49, says he understood the CPO was a joint venture between the council and developer Modus Corovest (Newport) Ltd and originally opposed the plans when they were announced in 2006.

He withdrew his objections because he was assured he would get compensation for moving, but since the scheme was ditched in June 2009 and parent company Modus Ventures went into administration, he hasn't received a penny.

His previous store has remained empty ever since.

He said: “We have moved in response to the CPO and yet we are told that we are not entitled to anything. It seems a very big injustice to me.

“It has been very damaging to business, we were hoping to expand but we had to invest it all in relocating the shop.”

A spokeswoman for Newport council said it did not acquire the lease of AG Meek and the owner sold it to Modus Corovest.

She said: “It was a purely private arrangement therefore the council is not liable for any compensation to the business owner.”

But a letter from Geldards Solicitors written back in 2006 invites Mr Meek to a meeting to discuss his objections to the CPO, and states the solicitors are acting on behalf of the council in relation to the Newport City Council (redevelopment of John Frost Square) Compulsory Purchase Order 2006.

Mr Meek, whose family has had a store in Newport since 1920, is now considering taking legal action against the authority unless the money can be recovered.