Struggling Derby Market Hall’s forecast loss increases

Inside the Market Hall in Derby. Image by LDRS.

Derby’s struggling Market Hall continues to lose money with a forecast loss increasing by tens of thousands of pounds – as council chiefs look set to appoint a new operator.

It is anticipated Derby City Council will approve a private company to run the venue on its behalf in the very near future, a new financial report states.

It comes after a damning review laid bare the reasons why the £35m Market Hall has struggled since reopening last year.

While the internal review was taking place, papers showed that the restored Grade II listed building was forecast to lose £338,000 by the end of the financial year “due to a shortfall of trader income”.

At the time the Labour-led council said the figure “does not represent the full-year position for the Market Hall”, and leaders have since vowed that the venue will be successful in the long term.

Council leader Nadine Peatfield told a meeting: “Experience elsewhere demonstrates that transformation takes time.”

But newly published papers state the forecast loss has slightly increased to £375,000 at the end of quarter two.

The report then adds: “Following the Market Hall commercial review; it is anticipated that a commercial partner will be approved during quarter three to support recruitment of new traders and in turn improve financial performance.”

The council launched an internal commercial review into its opening and business case following public criticism of its operation and “low” footfall.

It said the Market Hall reopened “without clear commercial objectives and without a single, insight-led commercial and marketing plan”, and the business plan for it “does not currently include clear, measurable commercial objectives or performance targets”.

The shortcomings have seen traders experiencing “lower than anticipated sales and quieter periods”.

However, it said the Market Hall is “attracting significant footfall, particularly at peak times and during events”.

Leaders have vowed to make the venue a success in the long term and traders have said there is large footfall during weekends.

Last month the council’s administration agreed to explore working with a commercial partner “who could bring additional skills in trader mix and recruitment, marketing, customer experience and performance”.

Any deal struck would see the council retain ownership of the building and strategic control.

The manager of the Market Hall resigned a few weeks ago, it emerged.

The city council thanked Hana York for the “huge contribution she’s made as manager of Derby Market Hall” during her tenure as boss.

Derby City Council has been approached for comment on the new financial figures.

Last month Derby City Council leader Nadine Peatfield said: “In its first year, the Market Hall has established itself as a destination, supporting independent traders and bringing new life and activity to this historic building.

“Our focus now is firmly on the future and we will continue to work with our traders and partners to ensure the Market Hall delivers on its full potential – for traders, customers and the wider city centre.”