Rescue on cards for Glencraft workforce
Lease sale could raise cash for new factory
Published:
A THREATENED Aberdeen charity for the disabled is on the verge of being saved after the board of governors agreed to sell the lease on its factory.
Glencraft, which employs disabled workers to make furniture, had been earmarked for closure by the end of the year as a result of massive overheads and Aberdeen City Council’s £50million of budget cutbacks.
But last night the remaining 61-year lease on the charity’s Wellington Road factory was put on the market in a last-ditch bid to secure the future for its 56 employees, 38 of whom are blind or otherwise disabled.
It is hoped that the money raised by the sale of the lease will fund a move to other premises in the city where Glencraft will start its new life as a social enterprise.
Deal
The factory’s interim general manager, Anthony Pratt, 59, said a deal was “in the pipeline” for the new factory that would see Glencraft share a base with other social enterprise firms.
“We have got a basis of a plan now which will revolve around relocation and our current property will be on the market as of this evening,” he said.
“The whole thing hinges on the sale of this lease.”
There are about 55,000 so-called social enterprises in the UK, with a combined turnover of £27billion.
Rather than maximising shareholder value, their main purpose is to generate profit to further their social and environmental goals. Examples include Jamie Oliver's Fifteen restaurant, The Big Issue and the Co-op Bank.
The news will be welcomed by Glencraft’s workforce. They feared they would be made unemployed after the city council withdrew a £650,000 subsidy.
Glencraft had a 99-year lease with the city council on its current base. The site was later sold to Prudential Assurance, which has agreed to allow the remaining term of the lease to be sold on.
A statement issued by the council on behalf of all parties involved confirmed that the Glencraft board had approved a new business plan that will transform it into a sustainable social enterprise.
“This exciting new era will see the business move to modern premises and partner with other social enterprises to establish a major city resource supporting employment and training for the blind, disabled and disadvantaged,” it said.
“The governors thank the working group that included, PriceWaterhouseCoopers, the Social Resources Trust, the Scottish Government and Aberdeen City Council for bringing forward these proposals.
“The proposed solution has been made possible by the support of Prudential Assurance and the city council’s long-running efforts to find a viable solution for Glencraft.
“Work continues to resolve some key issues but hopefully Glencraft and their workforce are at last emerging from a very difficult period in their long history of providing both meaningful employment and quality products.
“This good news coincides with Glencraft recently receiving one of its largest orders for over 1,200 mattresses.”
