Clwyd Leisure in liquidation advice over funding cuts
- 18 January 2014
- From the section North East Wales
A trust running three seaside leisure sites in Denbighshire says it may have to consider going into liquidation after councillors pulled their funding.
Clwyd Leisure employs 70 permanent and 55 seasonal workers at Rhyl Sun Centre along with Prestatyn's Nova Centre and the North Wales Indoor Bowls Centre.
Denbighshire council is withdrawing its £200,000 annual support due to concerns over the way the organisation is run.
A union says staff are caught up in the middle as the trust is taking advice.
Clwyd Leisure was set up by Denbighshire in 2001 to run facilities on its behalf, but last year the trust warned that repeated council cash cuts could not be sustained.
Trustees of the not-for-profit organisation have been holding talks with the authority for some months but the crunch came on Wednesday when the council's cabinet committee decided to withdraw financial support for the next financial year.
In a statement in response, Clwyd Leisure said: "The unexpected decisions by the cabinet of Denbighshire County Council has meant that directors must consider the impact of those decisions and apply due diligence in agreeing a way forward.
"Before our professional advisors can recommend to the board whether it is necessary to enter into liquidation, it is necessary for the council to advise on its position with regard to the pension fund guarantee.
"A further statement will be released once Denbighshire County Council have responded to our request to confirm their position on this matter."
After that cabinet meeting, the council said it had been looking at the future of Clwyd Leisure for several months in a process which had "highlighted serious concerns about the way the company was being run and the operation of the facilities".
It has pledged to reinvest the £200,000 in promoting tourism in the area and wants to develop leisure services.
Hannah Gibbins, regional coordinator for the GMB union, told the Daily Post workers were told if there was no assistance the sites could close with jobs lost.
She said: "There is blame on both parties with this and the staff have been stuck in the middle of it."