Watford Borough Council said it acted “swiftly” to save a town centre market after it emerged the operators were in financial difficulties.

The council has taken over the running of New Watford Market after Telford-based Town and Country Markets (TCM) suffered an “act of insolvency”.

But the future of the market remains uncertain as the council says it can only run it for the short term.

In an urgent decision taken on Wednesday, a management contract was awarded to the council to operate the market for an initial period of six months. Had this not been approved, the market would have closed.

But it says it does not have the manpower to operate in the longer term and is “moving quickly” to find a new operator.

The council says it was aware of TCM’s financial difficulties but said it was not consulted before TCM put forward a company voluntary agreement to help manage its debts and avoid insolvency. When the council found out, a decision was made to take back control of the market and “secure its future”.

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On July 17, a petition to wind up TCM was presented by Watford Borough Council. This will be heard at the High Court of Justice in London on September 19.

The council says TCM owes them money and action is being taken to recover the amounts outstanding.

It added that the market is “financially viable”.

On Tuesday, officers visited the market when TCM’s “severe” situation became apparent.

Traders at the market today said they were aware that the council was taking over the running and some were “optimistic” that current issues would be addressed.

One market worker said she had heard last week the council would be taking over.

Wayne Love, owner of Fluffy’s Pet Store, said: “We know there are a couple of new owners in the frame but we don’t know who they are.

“Hopefully it will turn the market around.”

Peter, who has owned Pete’s Beanery since 2016, said: “This week the council stepped in to address a lot of issues so right now we are optimistic.

“There’s an improvement. The guy has put in changes this week. They want to make it work.”

The owner of Glomens Cosmetics said that he was being “forced” to close early as people shop in the high street adding they pay more in rent than they get as income.Watford Observer:

Mayor of Watford Peter Taylor said: “The council has acted swiftly and decisively to guarantee the future of Watford Market by stepping in to take control of it. TCM, the company previously operating the market, was clearly having severe financial difficulties and we wanted to make sure that the market is protected. This means that the traders and visitors to the market can carry on as normal.

“Day-to-day, neither traders nor customers will notice any difference. We have short-term measures in place for the management of the market and the council is putting in place interim arrangements with an alternative management company. In the meantime, we will make sure traders and residents are regularly updated.”

Town and Country Markets said the "matter is in the hands of its solicitors who are working with Watford Borough Council".