Clwyd Leisure to axe jobs and shut Rhyl and Prestatyn sites
- 7 February 2014
- From the section North East Wales
Talks to prevent the loss of over 120 jobs at three leisure sites in Denbighshire have failed, the trust running them says.
Clwyd Leisure said due to funding issues it will have to shut Rhyl Sun Centre, Prestatyn's Nova Centre and the North Wales Indoor Bowls Centre.
The trust wanted Denbighshire council to take over the operation and save 70 permanent and 55 seasonal workers.
But a statement issued on Friday said talks had finished without resolution.
Clwyd Leisure was set up by Denbighshire council in 2001 to run facilities on its behalf.
But the trust is in trouble after the council withdrew £200,000 of support.
Trustees of the not-for-profit organisation have been holding talks with the authority for months, but the council's cabinet recently decided to withdraw financial support due to concerns over the way the organisation was run.
In a statement on Friday evening, Clwyd Leisure said: "Negotiations with DCC [Denbighshire council] over the potential transfer of staff have finished with no way the jobs can be saved and so Clwyd Leisure have no option but to start the close down of the company.
"This will start with the closure of the facilities with immediate effect.
"The company will be appointing an insolvency practitioner to co-ordinate the closure of the company.
"It is with great regret that the directors have had to make this decision and they thank all their dedicated staff for their efforts and all our loyal customers who have supported us throughout these difficult past months."
Denbighshire council is yet to comment on Clwyd Leisure's latest statement.
The council said previously: "The reason cabinet did not agree to take on ownership of the company and leases is because of the huge liabilities around staffing, with many staff without employment contracts, and appropriate checks etc.
"We also want a detailed breakdown of the way they are allocating their cash reserves during the process of winding up the company as we want to make sure the best use of money provided by the council and that it is being used appropriately during the process.
"Until such time as the company can provide us with clarity on how they intend to resolve these employment issues with the workforce, the council is still not in a position to fully agree to this proposal."