The Lighthouse goes into administration
National architecture and design centre cuts 24 jobs with immediate effect
Published:
SCOTLAND’S national centre for architecture and design went into administration yesterday after long-running financial difficulties.
The Lighthouse in Glasgow has seen its revenues fall during the recession and has been unable to overcome a budget deficit.
The gallery employs 57 full and part-time staff, and will remain open while administrators PricewaterhouseCoopers LLP assesses its finances.
Eleanor McAllister, chairwoman of The Lighthouse Trust charity, said the decision to call in administrators was “heartbreaking”.
Ms McAllister said: “We know the devastating effect this will have on our staff and on the partners working with us on our projects.
“We have done everything possible to avoid this but the options before us were very limited in the current economic downturn.”
She said the centre incurred significant losses when it mounted the Venice Biennale project last year, and through the government’s decision not to fund a second Six Cities Design Festival.
A crisis package, put together with support from the centre’s main funders, Glasgow City Council and the Scottish Government, could not save it.
Bruce Cartwright, head of business recovery services at PricewaterhouseCoopers in Scotland, said “We are in agreement with the management team that there is an immediate requirement to reduce the overhead costs.
“As a result, and with deep regret, we have concluded that in this climate the organisation is unable to sustain the current level of employees.
“Our key priority has been to be open and honest with the staff, and this afternoon we met with them to announce the loss of 24 jobs with immediate effect.
“Clearly it is disappointing to have to make redundancies and our team will be doing all we can to help these employees at this difficult time.
“We are convinced that this action was necessary in order to give the organisation the opportunity to survive.”
