Administrators hoping for a buyer
Campbell Dallas tasked with handling Arches closure
Almost 130 staff lost their jobs after Glasgow Licensing Board last month imposed a midnight closing time on the popular nightclub following police complaints about drugs and alcohol related incidents. The club, which previously stayed open until 3am, generated more than half the company’s revenue.
The opening hours order was opposed by almost 40,000 people in an online petition, while 400 leading figures in the arts world, including novelist Irvine Welsh and members of Mogwai, Belle & Sebastian and Franz Ferdinand, signed a letter in protest.
Derek Forsyth and David Hunter, partners at Campbell Dallas, have been appointed joint administrators of Arches Theatre and Arches Retail Company Limited.
Founded in 1991 as a direct result of Glasgow being named European Capital of Culture, The Arches developed a policy of helping new and emerging artists gain valuable experience in a supportive environment. It employed 133 full and part-time staff.
Mr Forsyth, head of business recovery and insolvency at Campbell Dallas, said: “The Arches was facing unsustainable cash flow problems and despite an immense effort by the board and funding partners it was clear that administration was the only option for the companies.
“As a result of an uncertain future income profile the venue will immediately close. We have already contacted various funding partners and stakeholders to consider all options going forward and to see whether elements of the business may be resurrected. The Arches is an internationally recognised brand and we would encourage interested parties to make contact as soon as possible.
“The prospect of job losses has been well documented, and it is with great regret that we have had no option but to make 129 members of staff redundant with immediate effect. A small number will be retained to assist with the administration. We will work with relevant agencies to provide as much support to the affected staff as is possible.”