Knowsley Council has threatened to terminate the licences of 16 market traders on Christmas Eve due to rent arrears of over £41,000.
The local authority has sent letters out to 16 traders informing them that their licences will be terminated on December 24.
The rent arrears are the result of support payments issued to traders during the pandemic to help them pay stall charges at the market.
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A section of the letter reads: "Further to the letter from the Council's Sundry Debtors team issued on Friday December 3 , and in relation to the above stall, our records indicate that you have neither paid off the debt in full or put in place any formal arrangement to address your arrears.
"Accordingly formal recovery action will now commence in relation to any monies owed and your licence to trade at Kirkby Market is terminated with effect from close of business on Friday 24th December 2021."
The letter states that the council will consider granting new licences to traders if they make contact with the Sundy Debtors team to discuss clearing the arrears.
The letter also warns traders about their treatment of the council's market team.
It reads: "They are not to be threatened, intimidated or treated in any objectionable manner. If this occurs your licence will be suspended immediately."
A spokesperson for Knowsley Council said that the group of traders at Kirkby market had accrued rent arrears of more than £41,000.
The spokesperson explained that the arrears were linked to grant support payments issued during the pandemic.
The council said that that many traders were paid more money than they needed to cover stall charges during the pandemic.
A number of traders had come forward since receiving the letter to discuss repaying the money owed it is understood.
A spokesperson said: “Out of 42 market traders who benefitted from grant support towards their stall rental costs, 16 have accrued rent arrears totalling over £41,000.
“These traders were supported throughout the COVID-19 pandemic with grant payments. The aim of these grants was to enable the traders to pay their business costs, including the stall charges. The majority were actually granted more money than they needed to pay their stall charges.
"For example, one trader accrued arrears of £3,093.10, but received a grant payment of £4,050. In total, we paid out over £68,000 of grant support to the 16 traders.
“The Council has been in regular contact with those traders who are in arrears to ask them to make arrangements to address their arrears - the last such communication was on 3 December 2021, when they were asked to make arrangements to start to repay the arrears within 7 days or face recovery action and licence termination.
“Almost three weeks later, no arrangements have been made, so we have been left with no choice but to terminate their licences with effect from 5.00pm on Friday 24 December 2021.
"As a result of our latest letter, we have had a number of traders contact us to talk through repayment options and hope that more come forward. We very much wish that this situation had not arisen, but the council paid grants to the traders to enable them to pay the charges, and some of them have just not done so.”
