An east London car mechanic is facing eviction from his garage after falling £112,000 into debt with his landlord.
Len Maloney, who has worked at JC Motors in Haggerston for over 40 years, said his rent had become unaffordable, as it had more than doubled in the space of just two years.
Based inside a railway arch, his landlord is Places for London (PfL), a property company owned by Transport for London. The firm owns over 5,500 acres of land across the capital.
A campaign led by the East End Trades Guild (EETG) has called on PfL to recognise JC Motors as a ‘social value’ enterprise, as Mr Maloney’s business “has links to 12 local schools and colleges providing apprenticeships, work experience and informal mentorship to young people in need of guidance”.
EETG’s director, Krissie Nicolson, told the London Assembly in a meeting this week: “He is somebody who has a very big following in the community, and has very deep roots in the community.”
Prior to 2017, Mr Maloney had been paying a rent of £22,000 per year, but this was increased to £35,000 that year. In 2018, it was raised again to £45,000 and in 2019 was increased for a third time, to £55,000, where it has remained since.
The mechanic said he had been paying what he can, but had built up a rising pile of rent arrears, which now sits at more than £112,000.
PfL told Mr Maloney that he could either pay the full set of arrears and remain in his arch, pay half of what is owed and move to a smaller arch with a lower rent in Mile End, or have the arrears waived and leave his arch.
But the businessman said that moving would bring a “big risk” with it, as his existing customers mostly live locally in the Haggerston area.
PfL says that since comparable businesses on their estate are able to continue paying their rents, the company cannot give Mr Maloney a special status. He has been instructed to vacate his arch by the end of November.
Mr Maloney said: “The reasonable way forward for TfL would be to recognise that not all businesses are the same. They're painting everyone with the same brush and that to me is not fair.
“The value that I have here is a big value. I want them to take that social value, that I bring, into consideration - and value that as a very important part of the community, to have businesses like this.”
The EETG estimates that since becoming a PfL tenant, the mechanic has supported 300 local young people either through formal apprenticeships in partnership with Hackney Inspire, through work experience in partnership with local schools or via informal mentoring.
“They need to recognise these businesses, wherever they are,” said Mr Maloney. “I work with 12 different schools, I work with all of these young kids that have come through - I'd love to continue doing that, because I know that they need that little step, to move on to whatever else that they want to do.”
Approached for comment, a Places for London spokeswoman said: “Despite paying well below market rent, JC Motors has built up significant and unsustainable rent arrears.
“Our offers of assistance, including offering an alternative location on our estate with lower rent, have not been accepted. Therefore we have reluctantly taken the decision not to renew JC Motors’ lease.
“We are committed to working in partnership with our tenants, 95 per cent of whom are small and medium-sized enterprises (SMEs).
“We understand that the closure of any business can be distressing, and we always do our best to support tenants so that we can avoid these situations.”
In an open letter to Sadiq Khan, the EETG has called for the mayor’s “urgent intervention”.
Mr Maloney’s situation was also raised last year with Mr Khan by Hackney’s London Assembly member Sem Moema. It resulted in a meeting between Mr Maloney and Mr Khan’s deputy mayor for transport Seb Dance, along with Ms Moema and the EETG.
Ms Moema said: “It was my understanding at that meeting that, as requested by deputy mayor Seb Dance, a follow-up would be scheduled shortly after to work through the business model of a social value lease, specifically in relation to Len Maloney’s arch.
“It seems this has got lost in the transfer to PfL; it’s imperative that this is worked through, as clearly there is merit in social value and community land trust.”
The EETG will hold a live music event to raise funds for Mr Maloney’s campaign on Tuesday, October 15.
