A collapsed company that ran markets for Liverpool City Council owes millions of pounds to the local authority.
Liverpool Markets Limited, (LML) which managed the council's markets across the city, entered into liquidation in May 2019. A report by liquidators FRP Advisory Limited LLP has now revealed LML owes the council £3,469,896.00.
Information on Companies House records the company was formed in 2003 and Liverpool council took control of the company in 2016, buying all the shares. The accounts from December 2015 showed a deficit of £965,330.
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This deficit increased to £2,398,077 in March 2017. The latest figures posted earlier this month show that LML owes the council £3,469,896.00.
Colin Laphan, Chair of Liverpool Markets Traders Association, said that he did not understand how the debt had increased to such levels prior to the lockdown period.
He said: "When we discovered this company had failed we were shocked. We had been assured that this company was gong to take all the markets forward, bringing in huge investment and make changes to all our livelihoods.
"Considering the solid income across all of the Liverpool markets prior to lockdown we're at a complete loss as to understand how this debt built up so quickly. It has left a rather bitter taste."
LML managed well-known markets such as St John's in the city centre and Great Homer Street in Everton.
Richard Kemp, leader of Liverpool's Liberal Democrats, said: "The spectacular collapse of the Liverpool Markets Company is one of the reasons that the council is having a review conducted of our remaining Local Authority Companies.
"The £3 million loss is just part of a much larger sum which I believe to have been absorbed as a cost by the council because of the failings of the council to adequately control its own affairs.
"When certain politicians complained about cuts from the government they conveniently forgot to mention the cuts that we were being made to pay for the incompetence of their own council.
"The council has just completed a review of our markets function and the Liberal Democrat group made many suggestions about how the markets function could lead to more businesses for local companies and better use of some of our facilities like parks.
"We await the report which will flow from this and will seek to implement measures quickly so that the markets don't make a loss but a positive contribution both to the economy of our city and the coffers of the council.
"The council now needs to concentrate on delivering it's services in a business- like way which provides good services at a good price for the people of our beleaguered city".
A Liverpool City Council spokesperson said: “We have been aware of the collapse of Liverpool Markets Limited for some time and as a result we are in the process of developing an ambitious and strategic direction for the city’s markets offer.
“Last year we launched a public consultation for people to have their say on our markets, and that feedback forms part of a brand new strategy which will work as a catalyst for their renaissance. A report will be presented to cabinet in July which is when the details will be publicly available.”
