Scotland’s centre for architecture and design, The Lighthouse, has gone into administration after failing to resolve long-standing budget difficulties. The board took the decision to wind the centre up after a meeting on Monday. The centre in Glasgow, which opened in 1999 and employed 57 staff, had been struggling with falling revenues in the recession and a budget deficit.
Its Rennie Mackintosh-designed building in Mitchell Lane will remain open while administrators assess the situation. Staff were told the news on Tuesday morning. The chair of the board of The Lighthouse Trust, Eleanor McAllister OBE, described the decision to call in the administrators as “heartbreaking”. “We know the devastating effect this will have on our staff and on the partners working with us on our projects,” she said. “We have done everything possible to avoid this, but the options before us were very limited in the current economic downturn. The Lighthouse, already in a vulnerable position and with no reserves to call on, has not been able to rally.”
It emerged last year that The Lighthouse had run up a £300,000 budget deficit. A rescue package was agreed that saw Glasgow City Council increase its core funding by £50,000. The centre was also given a £250,000 loan to clear its deficit and help increase its commercial revenue. Last month, it emerged that 44 of the 57 staff were under threat after income targets had not been met.
The trust board put a business restructuring plan out to consultation in a bid to save the centre but it emerged on Tuesday that its efforts had failed.
http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/8220112.stm
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