Leicester's Phoenix Square needs a £250,000 council bail-out
Leicester's Phoenix Square needs a £250,000 council bail-out, less than a year after the film and digital media centre opened.
Yesterday, it emerged the city council has just weeks to make a decision on whether to hand over taxpayers' money.
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Ted Cassidy outside Leicester's Phoenix Square
The financial crisis at the £21.5 million centre, which opened in November 2009, also means 12 staff are at risk of losing their jobs.
Films at Phoenix Square are filling an average 17 per cent of the available seating, meaning some are only watched by 30-40 people.
On Monday, the council's cabinet plans to discuss the issue in private.
A note on the agenda reads: "A delay in consideration of these issues may result in the closure of the building."
But Ted Cassidy, chairman the company behind the cinema and gallery elements of Phoenix Square, denies it will close.
He said: "The cash coming into the centre does not allow for a sustainable business and we need to resolve this.
"We experienced a real downturn in March, and this was not helped by other factors, including the World Cup, having a negative impact on ticket sales.
"A low footfall in the Cultural Quarter doesn't help but we are confident this will improve in the future.
"If we don't get the support, we might have to enact a more drastic situation than the one we are in at the moment – it's difficult to speculate at this stage."
In total, 72 part-time, full-time and casual staff work at the centre.
As well as two cinema screens, the centre has a café bar and the De Montfort University Cube – an interactive digital art gallery.
The council has given the centre £747,300 since last year and originally paid £6 million towards the building.
De Montfort University contributed £750,000 as a one-off payment when it opened.
Councillor Robert Wann, cabinet spokesman for leisure and culture, said: "We know there is a shortfall in the finances and they are looking for additional funding from the council to carry them over. I'm considering their request."
Councillor Ross Grant, leader of the opposition Conservative group, said: "I don't think we can let it fail at the first hurdle.
"But any money given must come with significant strings attached."
It is understood the bulk of the £250,000 is being sought from the city council, but De Montfort University is also being consulted.
Mike Batho, 67, from Evington, Leicester, who was visiting Phoenix Square yesterday, praised the venue but added: "I'm not very surprised to hear this.
"Some people have commented that it's hard to find and the location is under-developed."
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by Sandra Pickles, Leicester
Monday, August 16 2010, 1:59PM
“Unfortunately, people simply do not like walking there. Maybe when the area grows and there is more foot traffic this will change. But all the marketing and business planning in the world will not make people walk where they don't feel at ease.”
by Steve, Countesthorpe
Monday, August 16 2010, 8:59AM
“I'm afraid I have long been an advocate of the City Council leaving the running of arts, cinemas and entertainment to the private sector who do it so much better.
Note that the O2 Academy will open shortly and provide the top quality entertainment that has been so lacking due to the council policy of promoting minority entertainment instead of majority entertainment.
I fear that Pheonix arts, curve and Demontfort hall will all suffer in the the same way over the next few years and the tough decision of privatising these sites will finally happen!”
by Dave D, Leicester
Sunday, August 15 2010, 5:47PM
“I thought it was sad when the old Phoenix closed, and didn't really see the need for a newer, bigger, more expensive version, as the audience it catered for was relatively small. I'm not convinced that the move to digital is a good thing-at the screening today of Bronco Bullfrog the DVD got stuck halfway through the film. Not very impressive for a new multi-million pound "state of the art" cinema. Of course, if the new Phoenix does not survive, those of us who like to go and see less mainstream films will have lost out completely as the old Phoenix is gone for good-something the council should have forseen.”
by Joe, Leicester
Sunday, August 15 2010, 1:18PM
“£250,000? So much for the money they'll save by merging the central and reference libraries, then. And it won't be the last bail-out, either, unless they reduce the staffing and running costs and increase attendance.
The facilities ARE good but any dimbo can improve on existing facilities by going shopping for better ones with someone else's money. You wonder what kind of business planning took place before it got the green light. The councillors responsible probably thought like Red and saw it as a job-creation scheme first, a sexy regeneration project second and a self-supporting business third. No wonder it's in trouble.
Arts and Culture are vital to the Leicester but this issue shows that decisions on civic projects like Phoenix Square, the proposed New Walk Art Gallery and the closure of the Central Library are too important to be left to a few councillors -especially councillors with no expertise in project management, financial planning or public sector arts management. There needs to be much more non-political long-term planning, much more openness and much more public participation”
by steve, beaumont leys
Sunday, August 15 2010, 12:43PM
“Oh dear, why doesn't this surprise me. I was a regular visitor to the old and much missed Phoenix and would often watch a film with less than 10 others in the cinema. Where did they think that all the extra customers were going to materialise from? In other cities a venture such as this would be supported by the public, witness Broadway in Nottingham. The claims about a lack of parking are a red herring, I have always managed to find a space within easy walking distance. It's to difficult to find? In a city the size of Leicester? I don't think so. The truth is that the Leicester public are just not interested in sufficient numbers. Be prepared for similar announcements concerning all these live music venues in a year or so.”