THE company which owned a flagship town centre Indian restaurant which closed in September has gone into liquidation owing its council landlord £50,000.

EastzEast Restaurant BB Ltd has been voluntarily would up by its director Tahir Iqbal.

The firm also owes the taxman more than £27,000.

The restaurant in the former Blakey's Bar in King Georges Hall, Blackburn, closed in September after a possession order was placed upon it.

It is understood to relate to a business and legal dispute between the original partners in the venture and had nothing to do with the council which owns the building.

Now EastzEast Restaurant BB Ltd has been put into liquidation.

A Statement of affairs published by Companies House gives details of its assets and liabilities.

It says that the company owes His Majesty's Revenue and Customs (HMRC) £22,000 in unpaid VAT, £5,000 in unpaid Corporation Tax and an unknown sum in unpaid National Insurance Contributions recorded as a nominal £1.

The document records trade debts of £55,001 of which at least £50,000 are understood to be unpaid rent and other bill relating to Blackburn with Darwen Council and the remainder to American Express.

It also includes a bill of £180 to accountants Fazal and Company Ltd.

The statement estimates the assets of the company in kitchen and restaurant equipment as £116, 659.

Liquidators Begbies Traynor (SY) LLP are now seeking entry to the Northgate premises to accurately value these assets before starting to use any balance to pay off at least some of the debts.

Blackburn with Darwen Council is now actively marketing the premises and hopeful of securing a new tenant who can make the most of the premises' prime location in the Northgate Conservation area and the £3.8million Blakey Moor Townscape Heritage Project hospitality and cultural quarter.

The restaurant has been plagued by problems since it was first mooted in 2018 with a family dispute over the use of the brand name followed by a poor food hygiene rating and a relaunch with new owners in 2020.

The council had to 'write off’ £124,682.94 in unpaid debts by two companies involved in the venture later that year.

Blackburn with Darwen Council's Conservative group leader Cllr John Slater said: "We warned the council about this venture.

"They would not listen.

"This affairs questions the council's financial judgement and now the people of Blackburn with Darwen are paying the price."

Cllr Phil Riley, leader of Blackburn with Darwen Council declined to comment.

* The owners of EastZeast which runs restaurants in in Manchester, Preston, and Bradford and will open a further branch in Leeds in July have asked us to point out they have no connection with East Z East Blackburn. They are separate companies.