150 Jobs At Risk In Worthing, Lancing, Shoreham, Southwick, Storrington in Leisure Company Collapse

Monday, 20 July 2020 12:50

By John Warburton @Warblefly

Southwick Leisure Centre (Photo: Paul Gillett / Creative Commons)

Following a warning issued in June, Adur District Council today (July 20) said the company running many local leisure centres had collapsed.

According to the local authority, Adur Community Leisure had earlier requested a council-backed loan to help it weather the pandemic, but announced its voluntary liquidation before the district council made a decision on the money.

As a result, the district council said, 150 jobs are now at risk.

This morning, the leader of Adur District Council tried to assure residents that it will take "all steps possible" to secure sustainable leisure services in the future.

The leisure facilities affected are:

Lancing Manor Leisure Centre,
Shoreham's "Wadurs" Community Pool,
Southwick Leisure Centre,
The Gym Hub in Worthing,
Storrington Leisure Centre.

In 2005, according to the council, it awarded the parent company of Adur Community Leisure, Impulse Leisure, a 30-year contract to operate the centres.

Under the agreement, any financial surplus was due to go to the company, not the local authority — and, in addition, Adur District Council paid an annual service fee to the operator to enable it to deliver its services.

The council said last month that, given the amount of the loan requested (more than half the council's working reserve), and the then stability of the company, it took the view that there was a "substantial risk" that any public money loaned might not be recovered.

It was during the consideration of this loan that the company made its announcement.

Council leader Cllr. Neil Parkin said:

"We are very sorry this has happened and our sympathies go out to those whose jobs are now threatened.

"The Council has done everything possible to support Impulse moving forward.

"But we also have a duty to local taxpayers to ensure that local services are operated efficiently and cannot place a large financial burden on the authority to prop up an external organisation."

He added:

"We found ourselves in an impossible situation in that the sums asked of us were far too large with a significant risk that we wouldn't get it back and that the operators would still fail.

"This latest news proves we were right to be circumspect.

"However we will begin the process right now of finding a way to return leisure services to the community."