Pop Brixton is given two year lease extension despite making no profit

Pop Brixton has been given a two year extension on its lease, despite making a loss of £480,000 over the last year.

 The site houses 16 food traders in shipping containers, including both street food stalls and sit down restaurants. Popular Indian restaurant Kricket was a previous tenant at the site, and Koi Ramen, Mama’s Jerk and Donostia Social Club are amongst the vendors currently onsite. 

The self-styled business park made the loss on top of receiving £100,000 in public grants and a £92,000 loan from Lambeth Council since opening in May 2015.

The company’s accounts, filed in December, showed that the company’s creditors are due £1.65m- a significant leap from the previous year’s figure of £304,000.

The peppercorn rent deal for the site dictates that Lambeth Council, which owns the site, receives 50% of the profit made.

Last year, the company had predicted that it would break even in the summer of 2018, although the lease extension suggests that the council is not so optimistic.

It now seems that profit will not be seen until 2019, by which time Pop Brixton will have been trading for four years without returning profit to the landlord, or paying rent.

Pop Brixton was developed in reaction to high streets brands dominating the capital, and is home to more than 50 young, independent businesses, many of which were set up by local business people.