KNUTSFORD Town Council and La Belle Epoque are locked in a bitter legal battle over premises the restaurant leases at 60 King Street.

The council says its tenant had ‘forfeited’ the lease by entering into a Company Voluntary Arrangement, and has issued possession proceedings.

However, La Belle Epoque is fighting the move, and a petition signed by 169 residents urging the council not to force the company out is to be discussed by councillors at a meeting next week.

The petition says the council, based on a technicality within the lease, was looking to force The Belle Epoque out after 45 years.

It said: “They are unwilling to negotiate and even talk to us on this matter.”

A report ahead of Monday’s meeting said: “La Belle Epoque entered into a CVA. Despite an outstanding debt of legal fees owed to the council and the requirement that a landlord be included, the council was not included or notified of the CVA.

“In entering into the CVA La Belle Epoque have forfeited their lease. The Assets Committee, following legal advice, did not deem it wise to enter into a new lease with an insolvent company. The decision was made to issue possession proceedings for return of the premises.

“The relationship of landlord and tenant is at an end. La Belle Epoque remain in the premises effectively as a trespasser until the court grant formal possession.”

In a statement issued to the Guardian, the council said: “Since 2015 the council has encountered numerous problems with its former tenant at 60 King Street, La Belle Epoque Limited. These have included non-payment of rent, frustration of essential maintenance, unauthorised alterations to the building and numerous court proceedings.

“The council had tried to work with La Belle Epoque to reach resolution on issues to no resolve. Had the company behaved differently in its dealings with the council the outcome could have been different, but the situation is a culmination of almost five years of problems with La Belle Epoque that have destroyed the relationship.”

The council said its main focus would be on the future management of the iconic building and minimising disruption to wedding bookings.

However, La Belle Epoque says the council wasn’t ‘prejudiced’ by the CVA and is seeking a court order so it can continue to trade.

A spokesman said: “La Belle Epoque is grateful for the support by residents. We hope at Monday’s meeting the council will reconsider its stance regarding the lease.

“The dispute is the subject of several court proceedings and, on the basis of legal advice, the company had not intended to make any statements to the press. However, given the statement made by the council despite those proceedings, La Belle Epoque believes it has no choice but to provide a response.

“La Belle Epoque entered into a CVA with its creditors on February 19. The directors were required to make that decision due to recent difficult trading circumstances. Under the terms of the CVA La Belle Epoque will continue to have an obligation to pay all rent due under the lease as and when it falls due.

“The council is therefore not prejudiced by the CVA. The ‘debt’ the council refers to relates to their costs for ongoing proceedings between the council and La Belle Epoque. It is not correct for the council to refer to these costs as a debt, as the liability for the costs of both parties will not be determined until the conclusion of those proceedings.

“If La Belle Epoque were successful with those proceedings the council would be liable to pay our costs. As such there was no obligation to notify or include the council as part of the CVA.

“La Belle Epoque are applying to court for an Order which would confirm the lease remains in place and La Belle Epoque can continue to trade.

“The council is aware, as a result of correspondence between our respective solicitors, that an offer has been put forward by La Belle Epoque, further to which the council would be in a better financial position if it were to agree to La Belle Epoque remaining in occupation of the premises rather than by pursuing their attempts to remove us.

“The offer would also resolve all disputes regarding maintenance of the premises. However, no response to an offer in those terms made to the council has been received.

“It appears that matters cannot be resolved amicably and therefore La Belle Epoque and the council must wait for the conclusion of the court proceedings.”