A fried chicken restaurant in Tottenham, which received £340,000 in public money has closed. The Chicken Town businesses was given £340,000 in loans and grants by Labour-run Haringey Council over 2 years. Thus far there is no sign any of the money has been repaid to the council.
The restaurant was designed to provide ‘healthier’ fried chicken and was given the £340,000 by Labour-run Haringey to set up shop in Tottenham.
Breakdown of the cash given to Chicken Town by Labour-run Haringey Council:
- Loan: £210,000
- Grant: £90,000
- Additional grant: £40,000
- Total: £340,000
Lib Dem opposition councillors criticised the decision to loan money to the business at the time, saying there was real danger the council would never get the money back.
Lib Dem Councillor for Highgate Clive Carter, comments:
“It is clucking ridiculous how much money Labour has wasted on this failed and flawed venture. It was clear from the beginning that loaning this money was fraught with risks and was unlikely to change eating habits.
“The Lib Dems warned at the time that it was very likely that the business would never be able to pay the money back, as they would have to make a substantial profit before payment was even due. To make matters worse the Labour-run Council agreed to give the business even more money as a grant just a few months ago, in a desperate attempt to stop the business closing.”