Catering firm Elior has invoked a break clause in its contract for the venueStuart Arnold Local Democracy Reporting Service and Wayne Ankers Editor
07:45, 06 May 2026Updated 07:55, 06 May 2026
Kirkleatham Walled Garden(Image: Teesside Live)
Council bosses are urgently seeking a new operator for the Kirkleatham Walled Garden venue on the outskirts of Redcar, after the current leaseholder announced its plans to withdraw.
Elior has triggered a break clause built into the midpoint of a ten-year contract it agreed with Redcar and Cleveland Council in 2021, set to hand back the lease at the end of August.
The decision is a significant setback for the council, which is currently developing a masterplan to unlock the full potential of the historic Kirkleatham estate – home to several listed buildings – and which recently confirmed the return of the Festival of Thrift in July following a three-year hiatus.
The venue, which previously benefited from a £10m restoration, also boasts a café and events pavilion capable of accommodating 350 guests, hosting occasions such as weddings, awards ceremonies and other social gatherings, widely regarded as its primary source of income. Elior, which provides catering, hospitality and broader facilities management services, has now scrapped all bookings taken beyond 31 August, while offering full refunds to those 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.
Kirkleatham Walled Garden
The future of staff employed by Elior remains uncertain, particularly regarding whether they will retain their positions beyond August should a replacement operator fail to be secured in the coming months. It is understood that the gardens themselves are largely maintained by volunteers, reports Teesside Live.
A regular visitor to the gardens, who contacted the Local Democracy Reporting Service (LDRS) to voice her concerns, said morale “seemed low” in recent months. She noted that some fairs hosted by the gardens had been poorly attended, and also criticised “poor signage”, as well as the arrangements in place for those 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.”
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.”
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When the Local Democracy Reporting Service put these criticisms to an Elior representative and sought clarification on why the company was withdrawing and what the implications were for staff, these questions went unanswered in the statement provided. The statement read: “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.”
The council’s statement noted: “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 further stated: “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.
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“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 described it as a “much‐loved and beautiful venue, valued by residents and visitors alike, and remains an important asset to the borough”. It added that it was also “exploring opportunities with a range of potential operators to ensure the venue continues to thrive for the community”, though further details could not be disclosed while commercial negotiations remained ongoing.
In 2022/23, the gardens welcomed a total of 59,000 visitors, generating approximately £612,620 through a variety of events, including a school prom, awards evenings, wedding receptions, the mayor’s ball and a charity dinner. The walled garden, located off the A174, sparked political disputes at the council throughout its development, with a 2020 report disclosing the project had exceeded its budget by £1.6m. Its construction and anticipated opening were also set back by the coronavirus pandemic.
Elior was awarded a concession contract by the council for a period of up to ten years to manage the venue. Under this arrangement, while some initial direct costs were met by the council, the local authority would not be paying Elior directly for its services.
Instead, the agreement enabled the council to collect ‘turnover rent’ from the company, subject to certain adjustments.
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