Assignment of KFC Lease - Fleet Walk
PDF 188 KBDecision Maker: Director of Pride in Place
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Decision:
That the lease for 1A & 1B Fleet Walk Shopping Centre, Torquay be assigned to Clokken Limited.
Reasons for the decision:
The assignee will be guaranteed by Kentucky Fried Chicken (Great Britain) Limited who have good financial status hence the covenant strength of the Assignee going forward is strong and we would expect them to meet their financial obligations concerning the assigned lease.
Alternative options considered:
The Council would likely be unsuccessful opposing the assignment and the matter would invariably require litigation. Given the financial status of the Guarantor, opposing the assignment was dismissed as a suitable alternative option.
Implementation:
The decision will be implemented immediately.
Information:
The current KFC franchisee, EG Group, has sold its entire portfolio amounting to 218 restaurants in UK and Ireland. The acquiring party, Yum! intends to assign the leases into a newly incorporated group company which will hold all trading KFC restaurants. The new company is Clokken Limited which will be guaranteed by Kentucky Fried Chicken (Great Britain) Limited.
Interests and Nature of Interests Declared:
None.
Publication date: 06/02/2024
Date of decision: 02/02/2024
Contact Governance Support
- Email: governance.support@torbay.gov.uk
- Tel: 01803 207087
- Fax: 01803 207112
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