Bleak future for Brighton Pride as debts of £184,000 revealed

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Doubts over the future of Brighton Pride have been raised following a statement from its Trustees that reveals mounting debts and a decision to cease trading.

According to reports on Gscene, the Pride in Brighton and Hove has made a loss over a number of years and owes over £184,000.

The statement reads: “It is with great regret and sadness that the directors and trustees of Pride (South East), which has been running Pride in Brighton and Hove, have to announce that they are to cease trading. The decision was taken following advice from accountants, solicitors and insolvency practioners.

“The park event has made a loss over a number of years. In 2011 with the park fenced and ticketed, much greater costs were involved in putting on the event. Not knowing how many paying members of the public would attend, it was deemed necessary to provide for a ‘full house of 50,000.

“In fact around 30,000 people paid for entry, although feedback showed they were very pleased with the result, it meant there were more facilities and infrastructure provided than was required.

“A subsequent VAT ruling dramatically altered the cash flow of the charity. In early December HMRC rejected a reclaim of around £78,000 on the grounds that as a fundraising event the park ticket sales are exempt from VAT. This together with other losses made by the charity over the past four years has been too big a burden to carry.

“Negotiations have been ongoing with the largest creditor, Fisher Productions, to try and organise a Company Voluntary Arrangement, but after due consideration, such a measure would have required guarantees as to sponsorship and attendance which were just not practicable. The trustees thank Fisher, Select Security and other parties for their patience and constructive help in trying to put an agreement together.”

The trustees announced that it hopes another group or company will organise an alternative Pride in coming years. Russell Allen, chair, Pride, said that it hoped to seek a solution with the event’s two largest suppliers that would enable smaller suppliers to be paid.

 

Pride South East creditors include:

Fisher Productions Ltd              £129,106.08

Select Security & Stewarding    £19,285.47

St John Ambulance                  £11,732.80

Berry Recruitment                   £7,089.61

Same Sky Charity                    £6,000.00

C3 Productions Ltd                  £2,371.50

PRS Performing Rights Society £2,027.72

Lion Security                          £1,629.00

Baron Management Ltd           £1,232.84

TR Consultants                       £1,092.90

Brighton & Hove City Council   £945.74

Firststar Limited                     £600.00