Brighton Open Market could go bust, traders warned

Directors of the Brighton Open Market Community Interest Company (CIC) said it could face bankruptcy if it was not leant the money to sort out cash flow problems.

The announcement at the CIC's annual general meeting led traders to question if the market would shut its gates if the money was not granted and it became insolvent.

Board members blamed higher than anticipated business rates, problems with opening times and a lower number of temporary stall holders than planned for financial problems.

But some traders claimed the way the market was run by the CIC and the management company Ethical Property, and how money was spent, needed to be more transparent.

Councillor Kevin Allen, chairman of the CIC's board, said the loan application would be considered at an urgent Brighton and Hove City Council committee meeting called for Wednesday [4/11] and CIC directors had put together a recovery plan for the project.

He said: "When I came on the board and had a presentation that said the CIC was in a difficult financial situation, that was a shock to everybody.

"It was in danger of becoming insolvent and that moved into approaching the council for the loan."

Tony Morgan, head of housing at The Hyde Group and a nominated CIC director, said the council loan would give the CIC "breathing space" to sort out its cashflow problems and the entire lease and planning restrictions needed re-examination to help generate more income.

Dave Ovett, of bacon, eggs and cheese trader Ovett & Sons, said: "The biggest problem is the CIC doing things behind closed doors and we are suffering now when things have gone wrong. We, as traders, should have the biggest say - we see what goes on here."

Coun Allen said he welcomed the CIC being more open.

Nick Forster, Ethical Property's director of operations and a nominated CIC director, said the way in which Ethical Property had dealt with a problem previously at the market was "not competent."

When Chris Drew, chairman of the traders' association, claimed it had taken 14 months for the market to get mixed recycling despite the site being planned as an environmental "flagship" in Brighton, Mr Forster said this was "regrettable" and he found the delay “embarrassing" but insisted Ethical Property was "committed" to the long-term viability of the market.

Traders were pleased to hear they could now open up shop from 7am on Saturdays as long as deliveries did not take place until 9am, after previous confusion over trading restrictions.