A York restaurant caught using illegal workers has dropped its bid to change how it is run following objections from the Home Office and North Yorkshire Police.

The Sky Blue Chinese Restaurant has withdrawn its application to transfer its premises licence to Yuk Chuan Pang.

The police stated their evidence demonstrated Ms Pang had a business association with Zhong Le Chen, the previous licence holder who was present during immigration raids last year.

Home Office Immigration Enforcement officials stated Ms Pang had not proved she was effectively checking the right to work of staff following the enforcement visits.

Sky Blue Chinese Restaurant, in Barbican Road, York. Picture is from LDRS

placeholder image — Sky Blue Chinese Restaurant, in Barbican Road, York. Picture is from LDRS

It comes after the restaurant and karaoke bar, in Barbican Road, was stripped of its licence following a City of York Council hearing on Thursday, September 24.

The Home Office’s application to revoke the restaurant’s licence followed raids from its Immigration Compliance and Enforcement (ICE) officers in July and December last year.

Officers found one worker in July and another in December who were working there but checks showed they did not have the legal right to be in the UK.

Mr Chen, who was the premises licence holder for the restaurant when it previously traded as The Regency Chinese Restaurant, was present during both raids.

He denied running the business but checks with the council found he was listed as its owner, despite the licence being held by Kheng Chooi Koay.

Sky Blue York Ltd, the venue’s operating company, went into liquidation in September owing £102,412 to creditors.

The company’s debts included two unpaid fines worth a total of £95,000 issued by the Home Office in October and January after the raids.

In its objection lodged against the licence transfer application, the police stated Ms Pang had denied having any business association with Mr Chen in September’s licensing hearing.

But the force added she had been present during an immigration raid on The Regency restaurant in Selby in 2019 and told officers she was in charge of the premises.

Mr Chen was and remains that restaurant’s licence holder.

The police objection stated: “The provision of misleading information during licensing proceedings raises serious concerns regarding Ms Pang’s credibility, integrity, and suitability to hold a premises licence.

“Given the history of the Sky Blue premises, the ongoing concerns relating to crime and disorder, and the apparent lack of candour displayed by Ms Pang during the review hearing, North Yorkshire Police is satisfied that granting this transfer application would significantly undermine the licensing objective of the prevention of crime and disorder.”

The Home Office objection stated it was not satisfied that the transfer would represent a genuine change in management or that effective compliance systems were in place at the restaurant.

Officials said: “There are significant concerns regarding credibility, candour, management control and suitability.

“This does not provide confidence that the failings which resulted in the revocation of the premises licence have genuinely been addressed, nor does it provide confidence that granting the transfer application would promote the prevention of crime and disorder objective.”

The licensing hearing scheduled that the premises licence transfer application was set to go before on Thursday, October 29 was cancelled following the withdrawal.