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'Future bleak' for traders at historic market
Katrina Bishop14 Apr 2009
SHOPS in one of London's oldest arcades today warned they could close if landlords do not help during the recession.
More than 40 businesses in Leadenhall Market have spent the past six months pleading with the City of London Corporation to reduce rents.
They have also sent a petition to officials, asking if they can pay rent weekly or monthly instead of quarterly, to ease cashflow problems.
Traders say takings have fallen 50 per cent since the summer. They blame the recession and more than a year of roadworks near the arcade entrance. Meanwhile, bridging loans from banks are increasingly difficult to secure.
But the corporation has refused to change fees. It said traders must pay accountants to decide if there are special circumstances that could lead to a change in contracts.
The corporation will only let traders use in-house accountancy firm PricewaterhouseCoopers, which charges more than £200 per hour.
Terry Dawson, director of the oldest business in the arcade, A Booth florists, said: "If they continue to refuse to negotiate with us a number of us will definitely go under. We can't accept paying these accountancy fees because we think it would be an open-ended cheque."
The corporation has already taken at least one trader to court to evict him for falling behind with rent payments.
James Nash, 63, director of Suit Centre, said: "I haven't got any help from the banks. They've forgotten all about small businesses. I explained to the corporation this was affecting my cash flow but they stonewalled me.
"Instead of giving me leeway, they threatened to repossess my property and I ended up in court. Officials have an 'off with their head' policy."
Mr Nash avoided closure by paying a lump sum to the corporation, but has received a second repossession order.
The market, which started as a meeting place for poulterers in 1321, is a popular tourist attraction and has featured in several films including the Harry Potter series. Stephen Alambiris, of the Federation of Small Businesses, said: "If any of the shops in the market shut down a chunk of London's heritage will be gone forever."
He said local authorities have a duty of care to their tenants: "The corporation is in a prime position to be sympathetic to the plight of the small businesses, but instead they resort to these Scrooge-like tactics."
A City of London Corporation spokesperson denied officials were being uncooperative but acknowledged they charged shopkeepers for business consultants. She said: "We are committed to ensuring the continued vibrancy and success of the market."
Reader views (2)
It's become an unquestioned fact in this country that retail rent reviews only ever go upwards, but I think that's about to change drastically. Apparently in many malls in the USA rents are taken as a percentage of turnover, so the landlord has an incentive to promote the tenants, and help them in hard times, rather than sit back and bleed them white.
It might help if all the tenants gave notice on the same day: also, this imposition of one accountant must be open to legal challenge: what is it about free trade that the City doesn't understand?
- Mdj E10, london uk, 14/04/2009 14:04
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The City has forgotten its roots. The Leadenhall traders should come up to Walthamstow and set up stall on our market in the High Street: one of the longest in Europe. There are several pitches which are available. They would be very welcome.
- Technomist, Walthamstow, 14/04/2009 11:39
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