Coventry City of Culture of Trust falls into administration

The Coventry City of Culture Trust has gone into administration after failing to secure a solution to its financial woes.

The trust was set up to continue the legacy of Coventry’s year as UK City of Culture in 2021 through cultural and community projects.

Administrators at Armstrong Watson confirmed that 29 permanent staff and 21 casual staff had been made redundant.

Its board of trustees said the news was “devastating” for its team members and partners and that it was “regretful of the impact” the administration will have on the organisations and businesses involved.

Trustees said that whilst it had not been able to find a solution to secure the trust, it has, “continued to work closely with those who had pledged legacy funding, to try to protect those funds for the city and its cultural organisations”.

And although its activities had ended earlier than anticipated, trustees said in a statement that: “Coventry’s year as UK City of Culture has had a huge impact on the city and its positive influence will be felt for many, many years to come.

“The legacy includes increased levels of civic pride, volunteering, and active citizenship, transformed public realm and cultural facilities and a strengthened and more connected cultural sector”.

On Friday, the BBC reported that the Charity Commission was investigating the trust’s finances.

Last year, the council helped the City of Culture Trust with a £1m loan which at the time the Trust said was confident it would be repaid.

But councillors were briefed on February 8 to say that the loan was unlikely to be repaid.

Trust accounts recorded for the end of the financial year in March 2022 showed a funding shortfall of about £1.5m, with £20.6m of expenditure and £19.1m of income.

The trust’s total wage bill added up to just under £3.8m, having increased by £1.2m from the previous financial year.