London Pleasure Gardens In Administration
, August 3rd, 2012 12:33
Administrators Deloitte: “London Pleasure Gardens has underperformed against its original business plan”
London Pleasure Gardens, the east London events venue, has gone into administration.
The move has been confirmed by the business services firm Deloitte, who are running the administration.
Rob Harding, one of the administrators, said in a statement: “Unfortunately, London Pleasure Gardens has underperformed against its original business plan both in respect of festival activity and far fewer visitors than originally envisaged passing through the site and using its facilities. This has manifested itself in a cash flow shortfall in the business resulting in the directors having no option but to appoint Administrators."
The statement continued: “We are now in discussions with all of the key stakeholders with a view to ensuring continuity of services on the site, whilst seeking purchasers for the business and assets, which include significant semi-permanent event structures.”
Today’s news follows the official resignation of its co-founder and creative director Deborah Armstrong earlier this week.
The venue has had a troubled history, with a number of scheduled events being forced to cancel or downsize owing to the site being unprepared, with numerous safety hazards. Notably Bloc festival, which was hosted on the site, was closed down on the first day due to overcrowding. Yesterday, Secretsundaze announced that Go Bang their mini-festival was to be relocated to another venue, and both Last Mile Festival and Africa Stage at BT River of Music were forced to reduce their capacity.
As we previously reported, the venue was supported by a £3 million loan from Newham Council in a deal which would see the venue repaying the council through 20% of the site’s profits and 5% of the profits from the brand being used elsewhere. It remains to be seen whether the council will recoup their investment.