Liverpool City Council has ordered the closure of St Johns Market, and the termination of all 43 tenancies, effective immediately. The council has been trying to resolve the substantial unpaid rents and service charges, dating back to August 2020, with the market traders for some time. The council made concerted efforts to reach a repayment agreement with the traders, but despite warnings and reminders, they failed to make any meaningful response. As a result, non-payment has forced the council to subsidise the market, which amounts to about £1m per annum.
The council has invited all of the traders who lost their tenancies to arrange a schedule with them to relocate any of their remaining stocks. Meanwhile, negotiations will continue with one of the businesses making payments throughout the period, in a bid to relocate that particular trader’s stall. In October last year, the non-paying businesses were informed that all outstanding debts were due, and that any arrears incurred between July 2017 and August 2020 were written off.
Despite warnings, there was no plausible offer on the table. Following a recent offer of a repayment plan, with future rent set at 33%, the council deemed it untenable, given the scale of debts involved. Due to its tenancy legislation, each stall had to be closed, resulting in the market, which was leased from St Johns Shopping Centre, now being closed to the public. The council is committed to making the area economically sustainable and will undertake a feasibility study of alternative markets.
Liverpool City Development Cabinet Member, Councillor Nick Small, said that the council had to reluctantly take the decision to terminate tenancies. Every non-paying business owner was given plenty of time and chance to find a meaningful way to repay the debts. Given that it costs around £1m annually to lease the site for the market, it was no longer tenable for businesses that paid no rent to continue trading. It was not fair when the council had a duty to support vital services and other businesses across the city that were paying rent and charges. The council remains positive about finding an economically viable and sustainable future for the area
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