Tony Macaroni's prominent Marischal Square location. (Image: Google Maps)

Council pursues Tony Macaroni over unpaid rent and ‘violent profits’

Aberdeen City Council has escalated its legal dispute with restaurant chain Tony Macaroni, pursuing claims for unpaid rent and potential ...

Facebook
LinkedIn
X

Aberdeen City Council has escalated its legal dispute with restaurant chain Tony Macaroni, pursuing claims for unpaid rent and potential “violent profits” following the closure of its Upperkirkgate premises. The case, currently before Aberdeen Civil Court, centres on allegations that the brand, operated by Viva Italia, failed to pay rent on the council-owned property before ceasing operations in early 2025.

According to sources close to the council, Tony Macaroni reportedly owed a six-figure sum in rent to Aberdeen City Council, leading the local authority to initiate legal proceedings. The latest hearing saw legal representatives outline the next steps in the case, which includes a “proof before answer” hearing to determine the liabilities of Tony Macaroni and Viva Italia.

David Ford, representing Aberdeen City Council, informed the court that while some matters had been agreed upon, the core issues remain disputed. These include whether the defendants are obligated to pay rent arrears under the lease, their potential liability for “violent profits” during a period of unauthorised occupation, and a disagreement over a specific lease term. Thomas Moffatt, acting for Tony Macaroni, concurred with this assessment. A new hearing is scheduled for May 7.

Understanding ‘Violent Profits’ in Scots Law

A key aspect of the council’s claim involves “violent profits,” a distinct legal concept in Scots law. This refers to penal damages that may be awarded to a property owner when a party occupies premises illegally and in “bad faith”. The purpose of such an award is to compensate the owner for being deprived of the use of their property and to deter unlawful occupation.

Traditionally, violent profits could be calculated as double the passing rent for the period of unlawful occupation, although more recent judicial approaches lean towards a realistic estimate of the highest possible income the owner could have generated. Crucially, for a claim of violent profits to succeed, it must be proven that the occupation was not only illegal but also carried out in bad faith.

Timeline of Events and Closure

Tony Macaroni opened its restaurant at Unit F in Marischal Square, Upperkirkgate, in 2018. While the business navigated the Covid-19 pandemic with government support, issues reportedly surfaced in 2024 when, according to council sources, the restaurant allegedly ceased paying rent for several months. Efforts by the council to resolve the matter reportedly received no response from the company.

The situation escalated in December 2024, when the property was publicly marketed for a new tenant by CBRE, the council’s partner, without the restaurant staff reportedly being aware. Just days later, Aberdeen City Council formally terminated the lease. In a statement at the time, the council declared: “Under the terms of the lease agreement, Aberdeen City Council has ended the lease with Tony Macaroni. The site is being actively marketed for a new tenant.”

The restaurant eventually closed its doors on January 6, 2025, after the busy festive trading period. One key source commented to the P&J after today’s hearing: “It is no coincidence that they left in the second week of January – right after they had made all the money from the busy Christmas period.” The source further added: “So, at this point, the restaurant brand had done nothing over several months, then it came out in the press and then it was served an eviction notice.”

Another source reflected to the P&J on the broader implications:

“In this case, we have a company that tries to curate the image of a reputable restaurant, sponsoring a football stadium and offering ‘kids eat free’ days. Those things are genuinely good. But if a company wants to portray itself as part of the community, short-changing a taxpayer-funded council and not saying a word about it for over a year undoes all that good work.”

The former restaurant unit is currently undergoing renovation and is slated to reopen as a mental health clinic in the summer.

Tony Macaroni did not respond to requests for comment regarding the court case, nor did Aberdeen City Council, which typically declines to comment on ongoing legal matters.

Related Articles

Aberdeen Graduate launches platform to break “experience paradox” for early careers
M&S plan to demolish empty Aberdeen city centre store
BGF exits Aberdeen’s isol8 to Archer
Offshore group acquisition marks expansion into subsea testing and inspection
Tall Ships Races Aberdeen crowned UK and Ireland’s top placemaking event
Stronachs LLP announces trio of promotions across key practice areas

Other Articles from ABN

Subscribe to our Daily Newsletter

Why? Free to subscribe, no paywall, daily business news digest.