A long-running Christmas market in Cornwall which was cancelled last week has left market traders in financial peril after revealing it would not be paying back £50,000 worth of deposits.
The Padstow Christmas Festival, which had run for 17 years, was shelved by organisers who blamed "escalating costs" and flagging sponsorships, prompting dismay from would-be attendees and small businesses alike.
Founder Tina Evans had announced the event would no longer be running "due to unforeseen circumstances", telling traders: "It is with great sadness and regret that I have been left with no alternative but to cancel the 2024 Padstow Christmas Festival."
But now, Evans has confirmed those who had shelled out for deposits to run stalls - £871 each before additional costs - at the Christmas market would not be getting any money back, prompting outrage from would-be market sellers.
One trader told CornwallLive the move was "crippling" and said business owners were clubbing together to seek legal advice.
They said the move was "completely unfair", citing the fact small businesses had to deal with high costs at the beginning of each year in order to reserve spaces at Christmas markets in advance.
Over 60 traders were thought to have had places lined up for this year's event, slated for December 5-8, with considerable deposits laid down already.
But an email from organisers informing traders about the event's cancellation did not cover what would happen to any deposits.
Contracts - dated 2023, not 2024 - had been signed by traders and stated deposits were "non-refundable" in the event a trader pulled out, but did not reference the impact of organisers themselves cancelling the event.
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A later message was sent out confirming there was "no money to repay deposits", while Evans said the decision to cancel was made to "protect as many people as [she] could".
The full email to business owners read: "Sincere apologies for my late response. I am sure you are all in a state of shock for which I apologise and I have been very upset to read a lot of nasty comments.
"I do understand how you are feeling but I have been totally honest with everyone.
"Last week with the withdrawal of three sponsors it became very obvious that the festival was not viable. The costs were escalating and with funding diminishing, so to try and protect everyone involved I took the painful decision to cancel. This decision was not taken lightly. I took everything into consideration.
"The festival is a not for profit organisation which has worked well for the past 17 years, and for stallholders who have been attending for a good few years you know how successful it has been. It has been no mean feat to be listed among the top Christmas Festivals in the world.
"Your non-refundable deposits, which were part of our signed terms and conditions, set the festival up so I can pay deposits and running costs during the lead up to the event.
"I could have run on for a couple more months having taken your full payments and then as the large bills came in and sponsorship dropped I would have had to cancel in August. Then everyone would have lost a huge amount of money.
"I did not want that to happen. This is why I cancelled now to protect as many people as I could. I am very, very sorry but there is no money to repay deposits as I have paid out and that money will not come back either.
"As I said before it has been amazing working with you all. You have fantastic products and I know you will all do well going forward and thank you all for your support over the years."
Tina Evans told GB News: "After working full time for 17 years on a project I started from scratch, which I loved and put my heart and soul into it, to hear all the vicious nasty comments has been very upsetting."
