Page last updated at 09:16 GMT, Wednesday, 26 August 2009 10:16 UK

Jobs go at failed design centre

The Lighthouse (photo from Page & Park Architects)
The Lighthouse was opened by the Queen 10 years ago

Almost half the workforce at Scotland's centre for architecture and design - The Lighthouse - have lost their jobs after it was placed in administration.

Following the board's decision to wind the centre up on Tuesday, 24 of the 57 posts were axed with immediate effect.

The centre, which opened in Glasgow in 1999, had been struggling with falling revenues and a budget deficit.

Its Rennie Mackintosh-designed building in Mitchell Lane will remain open while administrators assess the situation.

Bruce Cartwright, from administrators PricewaterhouseCoopers, said: "We met with The Lighthouse Trust's management team in order to better understand the business and its cash flow pressures and the proposed restructuring plan resulting from the recent strategic review.

"We are in agreement with the management team that there is an immediate requirement to reduce the overhead costs.

"As a result, and with deep regret, we have concluded that in this climate the organisation is unable to sustain the current level of employees.

'Difficult time'

"Our key priority has been to be open and honest with the staff, and we met with them to announce the loss of 24 jobs with immediate effect.

"Clearly it is disappointing to have to make redundancies and our team will be doing all we can to help these employees at this difficult time.

"We are convinced that this action was necessary in order to give the organisation the opportunity to survive."

The Lighthouse was placed in administration after failing to recover from a £300,000 budget deficit last year.

A rescue package was agreed that saw Glasgow City Council increase its core funding by £50,000.

The centre was also given a £250,000 loan to clear its deficit and help increase its commercial revenue.

But this failed to stabilise the centre and losses continued as it failed to generate enough commercial revenue in the recession to meet costs.



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