Darlington Market has suffered another major blow as popular family-run café The Waterhouse Kitchen has announced it will close next month.

The venue will close its doors for the final time on March 14.

In a statement the café said it had ‘reached the point of no return’ and slammed the landlord for failing to negotiate over a £5,000 rent hike.

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Owners Peter and Suzanna Bulmer said: “After some discussion between ourselves and the landlord’s solicitor we were offered a lease with a rent increase of £5,000 (26%) plus they required us to sign away our rights under the landlord and tenant act.

“We considered this to be unfair and rejected their proposal on July 21, 2022.

“At the end of July, we had a meeting with the landlord to explain our position, and since then we have heard nothing from them.

“Sadly, since the landlord appears unwilling to provide the security of tenure, we have no other option but to close the business.

“Since last July 2022 we have been getting closer and closer to the point of no return, and then regrettably we passed it.

“Had the landlord engaged in some meaningful dialog it is conceivable that a compromise could have been found. Total silence since last July is in my opinion both disrespectful and unprofessional.

“We very much regret having to close a business that has become our way of life since we started it ten years ago. We pass on our appreciation to all our loyal staff and customers who have supported us for many years.”

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The market, which has been going through an extensive redevelopment to update its image over the past year, has seen a number of vendors leave in the last 12 months with landlord Market Asset Management (MAM) facing criticism due to the changes.

Last month an £800k cash boost was announced for the site, funded through the Tees Valley Combined Authority Indigenous Growth Fund, with plans to entice a younger demographic by replacing current empty units.

Council chiefs and market bosses said they would survey current and potential traders alongside market users about what is needed to revive the struggling shopping site.

A spokesperson for MAM, which operates the market, told The Northern Echo: “We are sad that they have decided to leave the market at the end of their lease, and we wish them well in the future.

“We are committed to offer flexible, modern leases to support small and start-up businesses, which includes excluded tenancies.

“That simply means when the lease comes to an end, a new one must be agreed. This is a standard practice in commercial lettings in any high street shop, shopping centre or market hall. In this case the trader’s rent had been fixed for the last 10 years.

“The owners have told us that rising energy costs have been a major factor in their decision, a frustration which we share.

“We have already had enquiries to take over the premises and we are moving forward with these. We hope to announce a new tenant very soon.”

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A Darlington Borough Council spokesperson said: “The lease arrangements between Market Asset Management (MAM) and individual traders are a commercial agreement between the two parties.

"The council has worked with MAM to heavily invest into the market which includes a new street food area, new bars and toilets.

“We have recently announced further investment into the traditional trading area and are committed to working with the existing tenants to fully refurbish the trading area with the ambition of attracting new tenants and ensuring it is a modern sustainable market.”