COUNCIL bosses are being asked to write off more than £50,000 in business rates owed by failed restaurant bosses.

American-style diner Shake Dog opened in The Mall in Blackburn in July 2017 following the closure of Ed’s Easy Diner, which shut in October 2016 after the company was bought out after going into administration.

But less than six months later, Shake Dog had closed down and the council was left with a hefty unpaid business rates bill.

The first bill was issued on July 12, 2017 and the first instalment, due on August 15 of that year, went unpaid.

A reminder notice was issued but payment was still not forthcoming so a summons was issued for the full financial year.

At a court hearing in September 2017, a liability order for the full balance was granted and a statutory letter giving Shake Dog bosses seven days to pay up was issued.

In October, the Shake Dog account was referred to the council's enforcement agents, Equita, who wrote to the firm as well as visiting both the Blackburn trading address and the head office.

In January 2018, the council was informed Shake Dog had closed, though the company still had a lease on the unit.

In the run-up to the start of the following financial year, a new business rates bill was issued, this time for the empty property rates accruing.

This also went unpaid and a summons was obtained and issued but returned by Royal Mail.

Efforts to recover the arrears continued until August, when enforcement agents told the council they had exhausted all avenues.

And in March this year, the council was notified that the company had been dissolved.

In a report to go before executive board, executive member for finance and governance, Cllr Andy Kay, said: "In arriving at a decision to write off a debt, officers must pursue a rigorous process to establish whether funds can be recovered before concluding as a last resort, that the debt is deemed to be irrecoverable.

"In this specific case all statutory notices were issued promptly following occupancy of the property and commencement of the business.

"In addition, recovery action was instigated immediately once the ratepayer had failed to make appropriate payments.

"The enforcement agents visited the business premises in Blackburn and the head office in London.

"Once the business ceased to operate on December 1, 2017, the options open to the council to recover the money reduced significantly.

"Other options such as bankruptcy proceedings were deemed to be inappropriate due to the lease ending in June 2018 and the lack of assets/capital.

"On the March 19, the council was informed that the company had been dissolved, and as a consequence the debt was irrecoverable."