Redcar and Cleveland Council is now seeking a replacement for Elior which is half way through a ten year contract
Kirkleatham Walled Garden
Council chiefs have been left scrambling to find a new operator for the Kirkleatham Walled Garden venue on the outskirts of Redcar after the current leaseholder signalled its intention to pull out.
Elior has invoked a break clause inserted at the half way point of a ten year contract it signed with Redcar and Cleveland Council in 2021 to relinquish the lease at the end of August.
The move is a blow to the council which is drawing up a masterplan to maximise the potential of the historic Kirkleatham estate – which has several listed building features – and which also recently confirmed the return of the Festival of Thrift in July after a three year absence.
The venue, which previously underwent a £10m restoration, also features a café and events pavilion with capacity for 350 guests, which hosts the likes of weddings, award ceremonies and other social events, thought to be its main money spinner. Elior, which delivers catering, hospitality and wider facilities services, has now cancelled all bookings it took after August 31, while offering refunds to anyone affected.
The council, which acknowledged the “great upset” this had caused, said it was actively seeking a new operator, but until that operator was in place it would be unfair to confirm any future bookings. It also said its registrars retained bookings with couples to deliver wedding ceremonies which would have taken place at the walled garden, and they would work with people to support them and plan their next steps.
The fate of any staff employed by Elior is also unclear and to what extent they will be kept on after August should a new operator not be secured in the coming months. It is understood that the gardens themselves are largely maintained by volunteers.
A regular visitor to the gardens, who contacted the Local Democracy Reporting Service (LDRS) to share her concerns, said morale “seemed low” in recent months. She said some fairs hosted by the gardens had been poorly attended and also criticised “poor signage”, as well arrangements in place for people attending functions.
She said: “They concentrate on Asian weddings as they are the most profitable and there were certainly plenty of them last year, but at one, guests from a wedding being hosted in a marquee had to come through the kitchens to get to the loo in the café.”
‘Like the Marie Celeste’
The visitor added: “For a company to walk away from a prestigious site still in the midst of the holiday season is inexplicable. It’s a great shame as I talk to people from all over the world who come to see the gardens.
“Since word of the [lease ending] spread, it has been like the Marie Celeste.”
The LDRS put some of this criticism to a representative of Elior and also asked for an explanation of why the company was pulling out along with what it meant for staff, but it did not address these in a statement it supplied. The statement said: “Redcar and Cleveland Council will be taking back the lease of Kirkleatham Walled Garden from 1 September 2026, in accordance with contractual terms.
“Customers with bookings after this date have been contacted. The council is currently considering future operating arrangements for the site and will share further updates in due course.
“We would like to thank visitors and the local community for their continued support during this period.”
Kirkleatham Walled Garden(Image: Teesside Live)
The council in its statement said: “As the operator, Elior took the bookings for all events at the walled garden, and the council was not involved in the arrangements for wedding receptions or other events.
“Elior informed the council that it wished to invoke the break clause in the contract and confirmed the end date of its involvement as the operator. It was Elior’s decision to invoke the break clause, not the council’s.”
It added: “Elior has cancelled bookings it took which were due to take place after August 31 this year, which is the final date of its involvement.
“The council understands that, as a result, Elior will offer full refunds to all affected parties. The council is now actively seeking a new operator for the walled garden, but until that operator is in place it would be unfair to confirm future bookings.
“We appreciate that Elior’s decision to withdraw as operator has caused significant problems and great upset for those who had booked events at the walled garden.
“This is the last thing we would wish to happen and we will now look to appoint a quality operator for the walled garden as soon as possible. In the meantime, the council’s registrars retain bookings with couples to deliver wedding ceremonies which would have taken place at the walled garden, and they will work with the couples to support them and plan the next steps.”
The council said it was a “much‑loved and beautiful venue, valued by residents and visitors alike, and remains an important asset to the borough”. It was also “exploring opportunities with a range of potential operators to ensure the venue continues to thrive for the community”, but could not provide any further detail while commercial discussions were ongoing.
In 2022/23 a total of 59,000 people visited the gardens, spending approximately £612,620 with events hosted including a school prom, awards nights, wedding functions, the mayor’s ball and a charity dinner.
The walled garden, situated off the A174, was subject to political clashes at the council during its development with a report in 2020 revealing the project had gone over budget by £1.6m. There were also delays in its construction and planned opening caused by the coronavirus pandemic.
Elior was handed a so-called concession contract by the council lasting up to ten years to operate the venue. This meant that, while some initial direct costs were covered by the council, the local authority would not be paying Elior for its services.
Instead the arrangement allowed the council to receive ‘turnover rent’ from the company, subject to adjustments.
Did you know you can make Teesside Live a preferred source of Teesside news in Google, which will mean you get more of our breaking news, exclusives, and must-read stories straight away? Here’s more information about what this means and how to do it – you can also do it by clicking here .
For the latest Teesside news direct to your inbox every day, sign up to our free newsletter
To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your Teesside community, visit the Public Notices Portal.
Comments are closed.