Restaurant drops licence transfer after objections

LDRS Picture shows the side of a building with cream walls and windows to the left with lighting in the middle of the wall and the words in red 'Sky Blue' on the wall and underneath the words it says 'Chinese Restuarant'.  LDRS
Sky Blue Chinese Restaurant, in Barbican Road, York, has dropped plans to transfer its premises licence

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

Sky Blue, in Barbican Road, had its licence revoked in September following raids by the Home Office's Immigration Compliance and Enforcement officers in July and December 2025.

It had applied to transfer its premises licences to Yuk Chuan Pang, however police stated she had a business relationship with the previous licence holder who had been present during immigration raids.

The restaurant dropped the request ahead of a hearing on 29 October.

Home Office officials found one worker in July and another in December, with checks showing they did not have the legal right to be in the UK.

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

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.

LDRS Picture shows the top part of a building which has a grey rood with a white coloured chimney in the middle and at the front right corner of the building. Two windows are to the left of the building with the words in red 'Sky Blue Chinese Restaurant'. Underneath are red bricks with the top part of windows showingLDRS
The Chinese restaurant was stripped of its licence in September following immigration raids last year

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

The force said 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.

Chen was and remains that restaurant's licence holder.

The police objection said "misleading information" during licensing proceedings raised concerns about Pang's "credibility, integrity, and suitability" to hold a premises licence.

The force said granting the 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."

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 £95,000 issued by the Home Office after the raids.

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