Campaigners who have stalled a million-pound deal between the council and a developer have formally announced plans to create Merton’s first co-operative pub.

The Campaign for Morden Tavern also announced its expansion and its renaming as the St Helier Pub Group (SHPG) and would include various advisors and business professionals interested in controlling the site in Central Road, Morden.

Following Merton Council's planning committee refusal of an application to demolish the pub and build flats on the site, SHPG has approached the developer about buying the leasehold.

The pub is owned by Merton Council and leased to property development company Reef Estates, which agreed to buy the site from the council for a rumoured £1m on condition that planning permission was agreed.

In a letter to supporters, SHPG spokesman Henry Basing, invited residents the chance to invest in their venture for a minimum £250 stake.

He said: “With the support of the local community, the site is a commercially viable business and our business plan shows that with the correct investment, the pub’s future will be assured.

“...Not only will investors get to help a part of the community survive, but they will of course share in the profits.”

Mr Basing added the venture would be modelled on The Hope co-operative pub in Carshalton, which opened in 2010 after 40 investors took on a 20-year leasehold from previous owner, Punch Taverns.

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