Phoenix Square Leicester is saved with £250,000 taxpayer bail-out
Crisis-hit Phoenix Square has been saved with a £250,000 taxpayer bail-out – but leading politicians heavily criticised its management and board.
Cabinet members, who approved the cash injection yesterday, demanded to know why the flagship film and media centre had run into financial trouble less than a year after opening.
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Phoenix Square
Councillor Paul Westley said: "I've asked why we should pump more money into a venue that's been appallingly run by bad management?
"It's only been going for a year and it's in trouble already.
"I want to know when the board knew that the finances were heading into such difficulty. I'm appalled by what has happened."
Films at the £21.5 million centre, which opened in November 2009, have been playing to an average of 30 to 40 people.
Without the bail-out it was likely the centre would have gone bust, insiders said.
The council has already given the centre £747,300 since last year and originally paid £6 million towards the building.
The 10-strong cabinet yesterday agreed to release an immediate £100,000 lump sum, followed by installments totalling £150,000 if targets – which are yet to be set – were met.
Culture boss Councillor Rob Wann said: "Cabinet's decision has not been an easy one and it is not easy to justify in the current financial climate, but we look forward to Phoenix Square becoming a thriving, profit-making operation in the future."
Ted Cassidy, chairman of the company behind the cinema and gallery elements of Phoenix Square, said after the meeting: "I'm really pleased the city council has supported us in this way.
"I will be meeting with the cabinet as a matter of urgency to set milestones and to finalise arrangements for presenting a new business plan."
During yesterday's cabinet meeting, councillors from all parties voiced criticisms.
Tory opposition leader Ross Grant said: "We've had to send senior city council officers to work at the Phoenix over the past few weeks and that in itself is a vote of no confidence in the board.
"The public want to see someone take responsibility for this."
Councillor Sarah Russell said she was "concerned" the centre's programming director and education officer had been laid off.
She said: "The reason we as a council support the Phoenix, as opposed to any other cinema in the city, is because it has specialist niche and educational programming. I'm extremely concerned that we're looking to support a management structure that doesn't seem to recognise the vital role these people played."
Six other members of staff also lost their jobs.
Coun Russell said the redundancies had unfairly hit frontline cinema staff, rather than managers.
"The city council always looks at management before targeting frontline staff when making savings. Yet that hasn't been done at the Phoenix."
Councillor Rory Palmer said: "I walked into a library in the city today and I couldn't find a leaflet about Phoenix Square, but there was a leaflet for the Broadway in Nottingham. Serious questions must be asked about failures such as these."
Lib Dem leader Pete Coley said: "This cash will prop up failed management. I'm not convinced they are competent in delivering a viable business."
The cabinet went into private session to make the decision.
As well as two cinema screens, the centre has a café bar and an interactive digital art gallery.











51 Comments
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by MappMan, Nottingham
Monday, September 20 2010, 12:20PM
“Just be glad you don't live in Nottingham - Phoenix Square (and Derby's Quad) show a far wider range of films....”
by Greg Wixted, LE
Wednesday, September 08 2010, 3:43PM
“I don¿t live in Leicester but visit a lot and my good friend Tracey Anne Miller took me to the Phoenix over a month ago, I loved it and have been back several times since. I come from a commercial marketing background and spent a number of years at Sony Pictures and the biggest problem with the Phoenix is simply lack of marketing and PR.
I think it¿s a great venue and it¿s a shame its empty and not getting the local support, but how can it if no one knows about it ??. Not many cities in the UK can say they have such a great space and you need to promote it not only to the people of Leicester, but the businesses of Leicester. I have never come across an independent cinema and digital art centre that does not have any corporate sponsorship. There is no tie in to the various film festivals (i.e. fashion themed films should have fashion retailers sponsoring the run or season, you have a gay film festival running in Sept but and no sponsor, there are many ¿pink¿ brands with cash, this is basic film marketing).
You can¿t buy tickets online, there are no affiliate partnerships online and the website is not even optimized for maximum search results. There is no link with the all the university websites or student groups. There is no real social media strategy (there are over 1.4 million people aged 18-69 on face book, twitter, Bedo and Digg in the Leicestershire area. The Phoenix has 1,500 on facebook, you should have 100,000¿s to make an impact and covert into sales). The cafe needs a PR boost and needs to be on every visitor website, get the food reviewed, and create offers that attract people and families and the hip arty crowd. Spruce up the outside court yard it¿s a great our door space, sell it as an event space to the corporate¿s in the area. Why is it not listed with film location companies?
I could go on and on but I think you get the point. I would be more than happy to meet with the management for ½ a day and give my advice for free to discuss a solid robust commercial marketing plan that segments out all the business assets and creates a micro plan for each element of the business that generates revenue. As we all know the council will not throw the Phoenix many more lifelines to the tune of £250K and it will be a shame if it does close down not only for the people of Leicester but the people who visit !!”
by SDominic, Leicester
Wednesday, September 08 2010, 2:36PM
“So the Chairman of the Board and the Managing Director have kept their jobs and the remainder of the creative team have been made redundant. This cannot be right? And LCC are happy to support the existing management and bail them out?
If PS is not longer providing a community or education programme then it has become a multiplex cinema, and as such LCC¿s support of PS is untenable. It can only become
I had hopes that PS would become a place that would grow a local, regional and perhaps international reputation for not only film consumption, but also for the business of film and media production and education. The people and creative communities of Leicester have been sold short by some shocking management, and it seems that the only people who stood a chance of developing audiences for PS have been scapegoated and made redundant. I use the following as an illustration, an example and concede that this is not necessarily the root of PS¿s problems, but that it points to cause. PS boasts sound and audio edit suites, that computer suite and a studio, all of which have never been operational more than one year after taking possession of the building. These facilities are potential revenue earners and also a means of engaging audiences, young and old, through programmes of filmmaking and media production. I don¿t think the film programmer or the education officer or the other unemployed ex PS workers had any jurisdiction over the failure of these facilities and the fact they are not operational is down to poor management and not having the zest to get things done.
I hope and believe that PS will survive, but the current state of affairs means that a development of a thriving space for exhibition and production has been put back years. PS needs a leadership and management that is enthusiastic, energetic, knowledgeable and businesslike and most of all the ability to listen to the communities and demographic who would like to see PS thrive. There are plenty of people with ideas and knowledge who can make PS work. At the moment these voices are not being listened to.”
by Tracey Anne Miller, Leicester
Wednesday, September 08 2010, 1:48PM
“Sorry, another one.
Brian, I want to know if anyone can help with the Digital Media & the Cube situation. I'm confused because I had thought that Ted Cassidy seemed completely behind this. Promoting the more diverse elements of Phoenix Square was his excuse for not having a 'Cinema' sign and yet it seems that this, too, has failed. Join us if you think we might be able to help.”
by Tracey Anne Miller, Leicester
Wednesday, September 08 2010, 1:39PM
“PS Hopefully, if we get this place turned around, there won't be a need for any more public bail outs. In fact, if it succeeds, there could be more bars & restaurants, shops selling DVDs & film memorabillia, art galleries - the possibilities are endless !”