AFFLECKS Palace traders have been granted a reprieve as talks over its future are set to continue into next week.

Stall holders at the emporium, at the heart of the city's Northern Quarter, were expecting to be served with one-week's notice to leave on Saturday after negotiations between management and landlords Bruntwood looked likely to stall.

But the two parties locked heads in crunch town hall talks this morning - and have agreed to meet again in a week's time. Around 20 traders turned out to hear the outcome of the meeting.

The centre's founder and leaseholder Elaine Walsh, who heads up the management team, declined to attend but representatives Graham Taylor and Mike Walker will relay discussions to her and have been asked to urge her not to serve any notice on traders in the meantime.

Afflecks businesses have been trading under a cloud of uncertainty for 12 months and it had been thought that they would have to vacate the iconic centre by January 26, allowing Mrs Walsh to hand back the building to Bruntwood in April.

Her 25-year lease expired in June and she has been operating on a rolling contract since.

Management say that they have been negotiating with Bruntwood since November 2006 and had served a legal notice for a new lease but had received no reply.

But Bruntwood say they have not objected to the notice which is reply enough under property laws, according to city centre councillor Pat Karney who presided over this morning's meeting.

It was revealed by Mr Taylor that Bruntwood are proposing increases in rent and service charges and have asked management to spend £500,000 bringing the run-down building up to standard.

Viable

He said Mrs Walsh wanted to keep the centre open but added: "We have to consider whether it's commercially viable and we can afford to stay open."

"Afflecks Palace is her baby, her creation, it's part of her," he said. Mr Taylor added: "I'm neither optimistic nor pessimistic - I'm just the messenger. I have to pass on information to Elaine and allow her to make her own decision." Mrs Walsh has declined to speak directly to the media.

Coun Karney initially met only with Bruntwood representatives this morning, believing that no-one from the management team was planning to attend. When the two gentlemen turned-up on behalf of Mrs Walsh, Bruntwood's team was called back to the town hall where the parties spoke in private for around an hour.

Coun Karney said that the talks signified "a huge step forward" and added: "For a whole variety of reasons the council wants Afflecks to continue. We want the traders to continue in there, we want the value that brings to Manchester - it's a great advert for the city and brings people to Manchester."

Traders asked Coun Karney if Afflecks' market licence, which was increased from £27,000 to £30,000 three years ago, could be revoked to provide some financial relief and he assured them he would investigate the matter. When asked if the council could step in and buy the centre, he said it was not within the budget to buy buildings and added: "It would cost us a fortune, we couldn't do that for any business in Manchester. You would kick off if I spent £20 or £30 million of your council tax buying that building."

Trader Chris Hall said: "It's not just about money. The ideas and the creativity going on in there are invaluable."

Simon Scott, head of marketing at Bruntwood, said: "We had a meeting this morning and look forward to exploring solutions next week."

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