Abbeycrest withholds property cash

JEWELLERY group Abbeycrest has told Moorgarth Property Investments it will not be paying more than £300,000 it owes in relation to its former head office.

Abbeycrest negotiated a deal with Moorgarth to bring an early end to its tenancy of the building at Wilmington Grove, Leeds, through a series of payments but is now refusing to pay the first instalment.

The company said that in the face of “challenging trading conditions” it had been in discussions with Moorgarth to try and renegotiate the deal. Moorgarth agreed to temporarily postpone the first payment of £311,400, due on September 28, until today.

However, the talks broke down on Wednesday and Abbeycrest has informed Moorgarth of its intention not to make the payment.

The company said that the terms of the deal would prevent Moorgarth recovering the money without the consent of Abbeycrest’s senior lender Burdale and this had not been given.

Abbeycrest said Burdale “remains supportive” of the company.