By Joe Locker, Local Democracy Reporter
Commissioners at ‘bankrupt’ Nottingham City Council say they plan to meet traders at the Victoria Centre Market to discuss its future.
Two and a half years ago Nottingham City Council announced it was planning to end the lease on the market in a bid to save an estimated £39m over the remaining 50 years of its term.
It said the costs of running the market soared by hundreds of thousands of pounds after the centre’s previous owner, intu, increased rents in 2014, forcing the authority to subsidise the market at a loss.
After intu went into administration, negotiations took place with centre asset managers Global Mutual in a bid to end the lease while providing adequate compensation to traders.
However, in a meeting in June last year traders were told negotiations had fallen through and the market would remain open. The Labour-run council then began to welcome in new traders on short-term leases.
Just a few months later in December, and after the council declared effective bankruptcy due to significant financial pressures, traders were told the council had decided to end the lease by summer or autumn 2024.
It U-turned on plans to welcome any more new traders.
Government commissioners were appointed in February to help bring about critical changes at the council, and the Local Democracy Reporting Service has been told they are interested in attending a meeting with traders in the future.
A spokesperson for the commissioners said: “One trader raised issues with us and we wrote to him at end of March to say that we would consider these views alongside the range of information we are currently pulling together. We have also made sure that these comments have been passed on to the council’s markets team.
“We are aware from conversations with officers that the council has reintroduced monthly meetings with trader representatives, which is a positive step, and this should provide an ideal forum for dialogue to help resolve any further issues.
“Commissioners are interested in attending one of these meetings and have asked the markets team to make arrangements for this at the appropriate time.”
It comes as traders continue to argue business is strong and that with good management the market could make money.
John Easom set up Gold Bank Jewellers in 2016 and now employs several staff having made it a success.
“I don’t understand why that meeting happened with nothing put in place to close it,” he said.
“If they were able to sell the market I could kind of understand why they wanted to close, but they can’t because they don’t own it. It is leased.
“So they will just have to pay to exit a lease, pay to get rid of businesses, and for what? That is the confusion.
“I would really like the market to stay open. We are two and a half years down the line with nothing having happened, other than deadlines being missed by the council to close.
“This should have been a good asset for the council to claw back some of the losses.
“This location for a market is incredible. It should be working. The only reason it isn’t because it has not been run well.”
One of the new traders, who opened in the market under the council’s previous plans to welcome new businesses, is Xue Du, who goes by the name Grace.
Despite saying business is good, she said she now feels stressed following the council’s decision to close the market just months after being welcomed in.
“If it closes down my future closes too,” she said.
“I spent quite a lot on the shop. If we close down I would feel sad because, first, I don’t know where I would move.
“If I moved my regular customers would feel sad as well.”
Another of the new traders, Sonam Honber, who set up a stall selling hand-crafted knitted items including slippers, bags and toys, has since shut up shop.
The market’s occupancy is around 50 per cent, and traders were told the council’s issuing of a Section 114 notice at the end of November, effectively declaring bankruptcy, means investment to bring the market back to working order is not an option.
Condition surveys had estimated the cost of refurbishment would range from anywhere between £2m and £10m.
Stephen Taylor, who runs Aladdin’s Cave, said the current market manager Shaun Miles should resign.
He said recent events show the council “has not got a clue what it is doing”.
“We are earning a living,” he added.
“The market is still a viable option. It was making a million pounds a year for the council until recent management changes.
“From what I’ve been told 80,000 to 100,000 people walk through the Victoria Centre on a daily basis. If we could fill this market again and get decent management this would make money for Nottingham City Council.
“There are viable businesses here, businesses making money, they are employing people here. It is something every city should have and if it is well run it can be a massive bonus to the city.”
The council says it has started holding monthly meetings with traders to help answer questions and address any issues raised, while concerns are under review.
A spokesperson for Victoria Centre added: “Victoria Centre Market is owned and operated by Nottingham City Council, who remain responsible for all of its management and maintenance, including the provision of security.”
