Council statement on Catford Mews

We understand local people’s concerns about the loss of Catford Mews and want to set the facts straight about what has been a long running negotiation with Really Local Group (RLG), the operators of Catford Mews. 

The Council, and CRPL (an organisation separate to - but wholly owned by - the Council) have been working with the operators of Really Local Group, who run Catford Mews, for a number of years to avoid this situation. 

Really Local Group, the operators of Catford Mews, have run up significant arrears in excess of £650,000 since 2019. 

Despite CRPL’s best efforts, Really Local Group haven’t been able to find a way forward. The council, or CRPL simply cannot afford to prop up a private commercial organisation to this scale. It isn’t fair to local businesses who pay their rent and service charges, and it isn’t fair to Lewisham Council taxpayers. This also increasingly impairs the Council's finances over time making it more challenging to meet our regeneration objectives in Catford. 

Much of what Really Local Group have said in their statement about Catford Mews isn’t true. Similar situations have been reported at sites run by them across London, including Peckham Levels and the Ealing Project, which have both entered administration in the last three months alone. 

RLG/Catford Mews held a lease until 2029, the terms of which had not been fulfilled by RLG due to their failure to pay bills to CRPL. CRPL engaged in renegotiations in good faith and drafted a Heads of Terms agreement, which summarises the key considerations prior to a contract. Following this, RLG requested that the lease be transferred to a new company. As a precaution, CRPL asked RLG/Catford Mews for an asset-based guarantee to ensure that the debt could be recovered. The Really Local Group never provided this. 

We recognise operations like Catford Mews were severely impacted during the pandemic. In response to this, CRPL provided a significant rent-free period. The Council, in addition chose to support Really Local Group with a total of £77,890 of additional financial support during this period. A £50,000 grant was awarded to refurbish the rear of the property and increase the offer (and therefore income) at Catford Mews. That work was never delivered. 

Spaces like Catford Mews are valuable, and we’re working with CRPL to find an alternative provider who can bring the community benefits we all want to see in a fair and sustainable way. There are a number of options being explored to minimise the time Catford Mews is closed. We will keep residents updated as soon as we are able to.