Gary Ince, chief executive of North London Business, has resigned over the "disastrous" organisation of the 'Olympia Market' in Marshall Road.
Although the council created the market on Marshall Road, close to Leyton Asda, they contracted North London Business to manage the project.
More than 30 traders from Leyton, East London, are demanding their money back after the council, and North London Business sold them Olympics pitches which have failed to deliver the customers promised.
The pitches cost an average of £25,000 each, with some as much as £27,000. Traders were told that crowds of up to 80,000 people would be passing by the stalls everyday - a promise that has failed to materialise.
Instead of the stalls being on a main thoroughfare to the Olympic venues, people are reportedly being directed away, with council documents allegedly advising people to stay away. As a result traders have reported that they have had some days with no customers at all.
Donna Thomas has been running a catering business for 30 years and invested £25,000 at the risk of her business, to host a stall during the Games. In the first three days she made only £110, and has now been forced to stop trading from the pitch.
'Many have borrowed the money and refused other jobs as we were focusing on this opportunity. Now, some of us are on the verge of ruin - days have passed and we've sold nothing, even having to throw away good food.'
'I know that this was a business deal, and like anything, it comes with some risk. But what we were sold and what we actually got were totally different -- just guesswork and empty promises that lead to us investing in something that wasn't real.'
The traders have launched a petition calling for North London Business, who sold the pitches, to reimburse the money invested after the deal that was promised was not delivered.
One signatory of the petition has raised concerns that:
'As with Athen's the Olympics of london will destroy the local economy while boosting corporate (corrupt) companies that only line the pockets of our (corrupt) government.'[sic]
The Olympics promise of a legacy, and that local businesses will prosper has also been called into question by this latest revelation. Far from prosperity these local traders from Leyton are as much as £27,000 out of pocket, from which their business may not be able to recover.