Sydney’s Paddy’s Market is at the centre of a debate over its redevelopment with some traders and members of the public opposing plans to give the venue a significant facelift.

The precinct – which is run by Sydney Markets Limited – has approved a proposal to sublet 3000 sqm of space to Doltone Hospitality Group to run a food and beverage and events precinct.

Sydney Markets’ CEO Brad Latham told the Sydney Morning Herald that the remake would enable an “upmarket offering” of artisan foods designed to lure people back to Paddy’s Market.

The existing site already has a dedicated space for fresh fruits and vegetables however, a huge chunk of the floor space is taken up by shops selling souvenirs, cheap jewellery, clothes, costumes and toys.

“At the moment, we don’t make money. There was a real possibility we would have to close down,” Latham told the Herald.

With the market occupancy rate down to 60 per cent, Latham says Doltone’s precinct would boost that to “close” to 100 per cent.

One trader opposing the plan, Judy Kim, said the market is a “Sydney institution” and that generations of families have flocked to the location.

However, many stallholders opposed to the redevelopment, agree the markets need to improve.

The plan is still pending approval from government agencies such as Placemaking NSW and development consent from the City of Sydney.