Page last updated at 16:03 GMT, Saturday, 25 October 2008 17:03 UK

Centre empty after funding issues

A £1.7m community centre in Leicester has been left empty after the company behind it went into liquidation.

The centre in Mowacre Hill was expected to have small business workshops, a cafe, gallery and community rooms.

The board of Chaos Enterprises, the not for profit company developing it, resigned after failing get a business plan approved by funding bodies.

The city council, which backed the project, said new managers could get the centre running next year.

City Councillor Patrick Kitterick explained that while Chaos had managed to build the centre, it could not see the project through.

"In order to get the money to build the building, they had to give certain assurances to the financiers - the biggest of which was the European Union - about providing social enterprise spaces, getting small businesses up and running in that area," he said.

"I think it became clear that the board could not deliver on that."

He added: "We will be presenting a plan to the liquidators to get the building open as quickly as possible because that is in everyone's interests."

He also said they had already received interest from other organisations interested in running the centre and they hoped to open it some time next year.


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