The charity that runs the Brentwood Centre in Essex is closing with immediate effect after the local council declined to offer further financial support.
Brentwood Leisure Trust was set up to run the centre, which includes fitness facilities, a swimming pool, and other health and beauty services, in 2004. It also hosts live music and comedy performances, which have all been cancelled due to Covid-19.
The centre had previously been run by the local authority, which leased the building to the charity for 30 years.
Trustees announced the charity would close “with immediate effect” yesterday evening after Brentwood Borough Council (BBC) voted not to offer any support to the charity.
In a statement they said: “The trustees and senior managers have been in good faith discussions with Brentwood Borough Council since July in trying to find a way to keep the services open and protect the jobs of all associated with the business.
“As we believed we were still working in good faith we continued these discussions until Wednesday 21 October. In spite of a deal agreed in principle this has been subsequently rejected by BBC.
“Following further meetings on October 26 and 27 with no resolution the trustees have been left with no option other than to wind up the business with immediate effect.”
Financial challenges
Brentwood Leisure Trust owed £340,000 to the council before the Covid-19 pandemic took hold.
The charity has also reported a financial deficit in the previous two years. In the year to 31 March 2019 it had an income of £2.4m, with spending of £2.7m.
Most of its income (£1.7m) came from charitable activities such membership fees, and charging people to use swimming and fitness facilities.
It reported a defined pension liability of £972,000 and said it this was why it held negative reserves.
“The Trust recognises that it is likely to remain reliant upon external support. The trustees and management team are aware that they need to seek out innovative methods of increasing revenue and to make continual improvements to facilities and services,” it added.
It employed just over 100 people.
£100m support for leisure centres
Last week the government announced a £100m fund for local authority leisure centres, but has not yet set out the full details of the scheme.
Community Leisure UK, a membership organisation for charitable leisure trusts, said at the time that the funding was welcome, but warned that the sector still faced challenges.
Mark Tweedie, chief executive, said: “Leisure services continue to experience exceptional financial pressures as a result of the coronavirus pandemic. So after months of campaigning with our sector partners, we are delighted with this announcement.
“Leisure service providers have worked exceptionally hard to open facilities safely and as efficiently as possible, and although this funding will help, it will not guarantee the long-term sustainability of leisure services as we know them, so more work and support is needed to secure appropriate levels of provision over the longer term.”
However, he called on the government to clarify how the scheme would apply to those leisure trusts that do not have a contract from a local authority.
“Although the public leisure sector is facing an ongoing common financial issue, severity varies dependent on local circumstances. So we eagerly await more details and hope that the distribution of funding can be expedited to the most in need, including public leisure facilities operated by charities that do not have a contractual relationship with local authorities,” he said.
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