Traders in St George's Walk say they are being "bullied and manipulated" by the Park Place developers after being told they have to stay another year in the neglected shopping parade.

The news brings further doubt to the development of the £500million Park Place shopping centre.

Work was due to start in spring but Minerva and Lend Lease have still not secured an anchor tenant.

St George's Walk is under a compulsary purchase order and was originally set to be demolished late last year.

But it now looks as though it will still be open in 2009 and traders say they are fed up with not getting any answers from their landlord, Minerva.

They claim that if action is not taken soon their businesses will go under.

Jose Fernandes, from Café Tempo, recently took out a new lease on premises in Battersea. But now he claims he has been told he will not receive any compensation for his St George's lease unless he signs a contract binding him in until December 2008 - leaving him with two rents to pay.

He said: "Not one of these businesses down here is breaking even. People in Croydon think all the traders have gone because that is what people keep being told but we are still here."

Traders fear that if they go bust before the end of their leases Minerva will have no obligation to pay them compensation.

Any compensation would be calculated on an average profit figure over the past five years. There are now only about 10 businesses left in the arcade - some of which date back to 1968.

Earlier this month the Croydon Guardian reported that Minerva had missed a deadline to secure an anchor tenant, which had been set by stakeholders Lend Lease as the end of 2007.

But Barry Yadave, owner of St George's Dry Cleaners, said: "We are being penalised for their mistakes."

Shop owners want to reassure people in Croydon they are still in business and welcome passing trade.

Minerva said it was working closely with shop owners.