The Labour-controlled cabinet at City Hall agreed to write off the debts, after officers said the procedures to recover the money "had been followed, exhausted and therefore regarded to be irrecoverable".

Just over £160,000 of the debt was business rates which discount superstore Poundland owed to City Hall.

A sweeping restructure by the company in 2024 saw it shut nearly 150 shops, including one in St Stephens Street, with 2,200 jobs lost across the country.

While the company still exists and, potentially, the council could yet receive dividends as a result of the restructuring, officers say that is "unlikely".

The same is true of almost £160,000 in business rates owned by River Island.

River Island (Image: Supplied)

The clothing company's Chantry Place store is closing due to restructuring, which follows a pre-tax loss of £32.3m in 2024.

Carli Harper, Norwich City Council cabinet member for finance and major projects (Image: Labour)

Carli Harper, Norwich City Council cabinet member for finance and major projects, said: "The companies are subject to court approved restructuring plans designed to support long-term recovery.

"While most businesses continue trading, older debts to unsecured creditors such as the council are unlikely to be repaid.

"It's important to stress that this is standard financial practice."

As well as the business rates, the council is writing off just shy of £250,000 in council tax owed by Vision Lets - a Dereham Road-based letting company which was dissolved in May last year.

A further £92,000 in council tax owed by another lettings company - Eastern Lettings, previously based in Barrett Road and dissolved in 2021 - has also been written off.

Mrs Harper said: "However frustrating we might find this process, it is the process. We have to work with it.

"The council has bad debt provision for such eventualities and the loss of income is shared by the council, Norfolk County Council and central government."

© Eastern Daily Press