Embattled traders in St George’s Walk who took Croydon Council to the Lands Tribunal have settled their dispute for an undisclosed sum.

Surrey Goldsmiths, Masquerade, Sergios and the Madeira Delicatessen served legal notices on the council in 2009, arguing they mishandled a Compulsory Purchase Order (CPO) for the £500m Park Place development, issued in March 2005.

They were told in 2005 they would be compensated by property giant Minerva for the market value of their businesses and the cost of relocating.

However, for many of the traders, Minerva, which planned to build a shopping mall in the area, never made an offer.

Those who received an offer never got the promised funds.

The Park Place development never went ahead, traders moved out of the once popular shopping area, leaving the shops empty and the Walk derelict.

After months of waiting for the Lands Tribunal to hear their case, the traders have reached an agreement with the authority to settle.

Chris Ross, owner of Surrey Goldsmiths, which has been in the Walk for more than 40 years, said: "I am so glad this is finally coming to an end.

"We are still involved in negotiations at the moment."

Sergio Oriani, owner of Sergios, which has traded in the area since 1973, said: "“It has been a long battle. Business is so bad, we really want to move on. I am glad the council has settled.

"The rest of the area around North End has been kept up to date but we have had different landlords and no one has invested a penny here."

Alexander Figueira, owner of the Madeira delicatessan has been in the Walk since 1995.

He said: “Even with the compensation I won’t be able to cover the debts we have got.”

A council spokesman said: "The council is actively involved in such discussions with specific traders within St George’s Walk who have made valid referrals to the Lands Tribunal but for obvious reasons it is not appropriate for us to discuss those negotiations publicly.

"However, we are hoping to resolve the majority of outstanding claims soon and are confident this will be achieved.

"Under the terms of the council’s previous development agreement with Minerva, the costs of settling those claims rests with Minerva."