South Shields fast food outlet at risk after administrators called in

The Burger King outlet in South Shields.
The Burger King outlet in South Shields.

A controversial fast food outlet in South Tyneside is at risk of closure - just a year after opening.

The Burger King branch in Shaftesbury Avenue, near Simonside, is one of 36 under threat of closure across the UK after administrators were called in.

It comes after two firms which run the outlets entered administration, putting up to 1,000 jobs at risk nationwide.

The Simonside branch opened last year adjacent to a McDonald's outlet, leading to a backlash from council health chiefs.

Having the fast food outlets located so close to each other led to a warning from South Tyneside Council that there was an obesity "time bomb", with figures at the time showing that over a third of youngsters in the borough finish their primary school years classed either as overweight or obese.

Jobs are now under threat and the Burger King outlet could close after Nick Cropper, Ryan Grant and Catherine Williamson, of business advisory firm AlixPartners, were appointed joint administrators over Millcliffe Ltd and CPL Foods Ltd earlier this month.

It is understood administrators were appointed after the businesses experienced cash flow pressures, thought to be down to delays in developing and opening new stores.

At present all 36 branches are remaining open and trading while administrators examine “all possible options for a sale of all or parts of the business”.

They will also work closely with franchiser, Burger King Europe GmbH, in finding suitable interested parties.

A spokesman for the administrators said: “Our priority now is to work closely with the business and determine the optimum route forward for the companies as we continue to serve our valued guests throughout the UK.

“We are confident that the companies are an attractive proposition for a range of potential buyers and, as such, we expect and welcome contact from interested third parties.”