Decision details

This report seeks approval under delegated authority for the transfer of the existing Chicken Town Ltd £210k OIF loan debt under a new OIF loan agreement to the proposed new operator of the restaurant at the former Fire Station, Tottenham Green, (limited company name Poulet Vous Ltd, trading as part of RoxyCo (Outside) Ltd holding company).

This report seeks Tottenham Programme Delivery Board approval for the transfer of the Opportunity Investment Fund (OIF) debt (the £210,000 repayable loan provided to Chicken Town Ltd in 2015) to the prospective new operator of the restaurant at the former Fire Station, Tottenham Green, limited company name Poulet Vous Ltd, part of the RoxyCo (Outside) Ltd holding company, on more favourable terms to the Council. The new operator is proposing to take on the existing £210k Chicken Town debt and loan liability. No additional council funding is being provided to the new operator other than the transfer of the £210k debt.

Chicken Town restaurant at Tottenham Green opened in December 2015. Significant progress has been made in creating and building a restaurant offer in this location. This supports the objectives of the Strategic Regeneration Framework and Tottenham Area Action Plan in strengthening Tottenham Green as the civic and cultural heart of Tottenham through encouraging uses such as cafes and restaurants. It also enabled an important local heritage asset to be brought back into productive use. Chicken Town also supported the objectives of OIF in creating jobs, bringing commercial floorspace back into use and contributing towards place making as well as delivering social and economic outputs.

Unfortunately, customer numbers have not been as high as projected and Chicken Town is currently running at a loss. The likelihood of the business being able to make any OIF loan repayment (the first being due in March 2018 and linked to the business making a profit above £50,000) is likely to be unachievable.

The Council is keen to ensure that the OIF loan is repaid as soon as possible. All loan repayments are recycled in fund and will be given out as future loans. As the £210k loan liability is currently held by Chicken Town they have endeavoured to secure a new experienced restaurant operator who is willing to take on this debt. The proposed new operator, currently negotiating the lease for the premises and required regulatory permissions, is willing to take on the debt of the £210,000 loan on terms which are an improvement on the current Chicken Town loan terms and increase the likelihood of the loan being repaid.

Not to transfer the £210k loan debt to a new operator. This was not considered to be a feasible option as this would mean the loan would not be repaid.

To conduct an open call process to appoint an experienced new restaurant operator willing to take on the premises and the £210k loan debt. This option was not progressed as the loan liability currently sits with Chicken Town Ltd and they identified an experienced restaurant operator willing to take on the debt.