Georgica has completed the sale of Allied Leisure’s Burger King businesses for £4.75m and subsequently withdrawn any further funding for the subsidiary – forcing it into administration.

Last year the company announced that it would continue to provide financial support to the loss-making Allied Leisure only as long as there remained the prospect that agreement could be reached with Allied’s landlords on its proposed corporate restructuring.

Since 31 December 2002, Georgica has provided £7.2m in financial support to Allied Leisure and estimated a further £5.4m would have been required over the next year, however it has now concluded that there is no “realistic prospect” that an agreement will be reached and is to cancel all funding.

Following the sale of the Burger King business – the net proceeds of which have been used to reduce Allied’s bank debt – the division – which incurs pre-tax losses of around £1.8m per year – now consists solely of “some minor trading activities” and vacant leasehold properties.

The appointment of a receiver for Allied Leisure breaches Georgica’s banking facility, but the company is confident agreement has been reached to waive the breach.

Georgica has guaranteed Allied’s bank debt, currently standing at £5m.