Iron Lilies in Princes Quay will reopen "in the very near future" after a "full reset", the restaurant's owners have said. The botanical garden-themed restaurant closed its doors in July, with owners Tokyo Industries vowing to reopen the restaurant "later in the year".
Last month, the opposition Labour Group on Hull City Council called for an investigation into how the restaurant closed down within a year of receiving a £750,000 grant of public money. Tokyo Industries has now issued a statement confirming the restaurant is to reopen this month with a "fresher and more affordable product".
The company, which is also the operator of the shopping centre itself, was awarded the grant from Hull City Council in the form of a Levelling Up Funds (LUF) grant which seeks to help fill vacant retail units, create jobs and boost the city's economy. The Labour Group described the situation as a "scandal" and called for the full disclosure of the actions around the awarding of the grant.
The statement issued by the restaurant's owners addressed the Labour Group's claims, stating: "This feels entirely political point scoring between rival parties; it is shame this much focus is not spent on understanding and supporting business and our communities who vitally need serious attention."
The firm argues that setting up Iron Lilies "would have been impossible" without the £750,000 grant. The statement adds that the project was also supported by almost £1.9 million of private investment.
Tokyo Industries' statement explains how "it is not uncommon for new ventures to fail, particularly in the hospitality sector," but added that the "unbearable cost headwinds" delivered by Chancellor Rachel Reeves" had been "particularly impactful". They explain the cost of running the restaurant had "surged a staggering £88,000 per year" as a result of changes made to the National Minimum Wage and National Insurance contributions, among other changes.
The statement continues: "Taken together, these measures have increased operating costs by over 30 per cent, a level that is simply unsustainable for any business, especially not hospitality which has a much higher wage per cent cost than other manufacturing or retail business."
Meanwhile, the firm also admits making "mistakes with the product, price point and elements of customer service which saw a steep decline in trade." At the point of 'pausing' trading in the Summer, the restaurant had cumulative trading losses of £536,431, the company said.
The statement says the company has "absolutely no intention of walking away" from Iron Lilies and confirmed that the restaurant will reopen "in time for the busy Christmas shopping period". It added: "We understand that having been a recipient of this Levelling Up Fund, we have a responsibility to deliver, and we are busy working on a new format which we hope will be a welcome new addition to the hospitality sector in Hull."
As well as having a new menu, upon its reopening, the restaurant will have "direct access from the dockside," the statement says. "We will provide further updates as plans progress and look forward to opening our doors and welcoming you back in the very near future," the company added.