The Charity Commission is considering whether to intervene after an east London-based charity café closed recently.
Hackney Chinese Community Services Association (HCCS) closed its Zao An Café in Hackney, which opened in November 2024, last month after saying that its operation “was not financially sustainable”.
The charity’s chair, Lin Fat Man, said in a statement that the café had been running on a “growing deficit” which had not been reported by its management team to the board of trustees.
He said the HCCS decided to close the café, operated at the local ESEA Community Centre, after its deficit grew to over £37,000 despite it paying “only a nominal monthly amount for rent and utilities”.
The charity made a serious incident report about the café’s financial losses to the commission, which confirmed to Civil Society it was assessing to “determine if there is a role for us”.
According to its most recently filed accounts, HCCS recorded a deficit of over £125,000 in the year to 31 March 2024, with its total income standing at £491,000 and its expenditure totalling £617,000.
Café staff raise bullying allegations
Meanwhile, an online petition has been launched by anonymous staff from the Zao An café team, which is calling for an independent investigation into what it alleges are “multiple whistleblowing submissions and safeguarding alerts”.
It alleges that there had been “persistent bullying and harassment from senior figures in the charity – particularly targeting young female staff”, with five female members of the café team making formal complaints since January.
The petition alleges that “public misinformation about the café’s finances has been used to justify the termination of staff and managers who raised legitimate concerns”.
It urges the commission and the charity’s funders and stakeholders – including Hackney council and Independent Age – to “oversee an independent investigation and governance reform” at the charity.
The petition also calls for a formal apology and admission of wrongdoing from the HCCS board and the dismissal of the manager and trustees “involved in the systemic bullying and harassment”.
In his statement published in response on the HCCS website, Man claimed that “contrary to rumours on social media, no one was harassed or bullied in leaving and there has been no unfair dismissal”.
He added that the charity was now “actively looking into options” to reorganise the café into a “viable concern”.
Funder and council assessing issues
Hannah Lison, head of grants and partnerships at Independent Age, said: “We are aware of the concerns recently raised about the management of HCCS by staff at Zao An Café.
“Our funding at HCCS supports a specific three-year project focused on providing benefits advice and financial wellbeing support to older women from minoritised groups in Hackney.
“We are working with HCCS to understand the situation and any impact on the delivery of this project.”
Hackney Labour councillor Joe Walker said: “We are aware of the issues related to the closure of Zao An Café, and we are working with all parties involved to understand what has happened and how the council may be able to help.
“The delivery of services to the community in respect of council grants and the use of the premises remains a priority for us, and we are working with HCCS to ensure that this remains at the forefront of their considerations.”
The council also noted that it cannot interfere in the governance of an independent charity, and that employment disputes are internal matters and for the organisation and affected staff to resolve.
