Mills' Credit Crunch Bargain

The ex-model agreed to pay $357,000 (£255,000) for the Big Fish Cafe in Hove, south east England, but when she signed the deal on Friday (13Mar09), it was revealed she spent just $196,000 (£140,000) on the lease.

But the arrangement left owner Nick Short fuming with Mills. He tells Britain's Sunday Mirror newspaper, "I have been well and truly worked over by Heather.

"Heather said she'd like to buy the place if it came on the market. Last July I decided to sell so I got in touch. I went to see her at her home and we made a verbal agreement for £255,000. That was later agreed in writing.

"The arrangement changed in November. I got a letter from her lawyer saying the price had dropped to £140,000. It blamed the credit crunch and the 'current economic climate'. Her lawyer said there were other issues such as the cost of the ground rent going up and the need to renovate the windows.

"I was shocked, absolutely gutted. I'd put off other buyers who were offering the full price thinking I had a deal with Heather. There was nowhere else I could go."

Mills was awarded $33.6 million (£24 million) in her high-profile divorce from the former Beatle.