A hospitality company set up by Sefton Council to run a struggling activity centre is on a recruitment drive.
Sefton Hospitality Operations Ltd, which is wholly owned by Sefton Council, was formed in June 2021 to run the Crosby Lakeside Adventure Centre in Waterloo.
Sefton Council said the company also hopes to become involved in other areas of hospitality, with a goal of bringing in much needed revenue to the council and providing employment opportunities for local residents.
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Announcing a recruitment driver earlier this week, Sefton Council said the company had “big plans” and was also in talks with Bootle Canalside and other concessions about providing hospitality services.
The council said a number of roles are being advertised through Sefton at Work, all of which will pay the real living wage and above, with training on offer and permanent employment opportunities.
The company was first proposed in early 2021 as part of plans for the £3.1m programme to transform Crosby Lakeside Adventure Centre.
The money for the transformation has come from a grant through the Liverpool City Region, and is aimed at improvement existing facilities, making the centre more “fit for purpose” and providing a fund for ongoing maintenance.
The centre has been struggling financially for several years and currently receives a £250k a year subsidy from Sefton Council.
Work on the transformation of the centre stalled late last year after the council terminated the contract with the company tasked to carry out the renovations after “unacceptable delays.”
Sefton Council said they have now implemented a “contingency plan” to complete the scheme following the contractor’s termination.
The council owned hospitality company, Sefton Hospitality Operations Ltd was not the council’s preferred choice for the project.
Original plans involved a ‘joint venture’ company, going in to partnership with an industry specialist, a company the council would hold a minority share in, renting out the centre at a peppercorn rate.
However, in a report which went to cabinet back in February 2021, officers said that in the light of the challenging conditions in the hospitality sector brought about by the ongoing impacts of covid there were “unfavourable market conditions” meaning the council had struggled to find a partner willing to get involved.
The council said that keeping services in house would not bring about the culture change desired to improve services at the centre and ultimately allow it to generate an income and so decided upon setting up a wholly owned council company.
The new company, Sefton Hospitality Operations Ltd, has been granted a £500k loan from the council, which they say will be repaid over a 10 year period.
The company’s business plan has just been released and is due to be discussed at cabinet next week.
According to the plan, Sefton Council anticipates to receive around £80k a year in income from the company after an initial five year period and will deliver a £250k a year benefit to the council through the removal of the current subsidy for the Crosby Lakeside Adventure Centre.
The plan states the council hopes for Sefton Hospitality Operation Ltd to become “an employer of choice in the hospitality sector” and have recruited an industry expert, Ben Hedley, as managing director to drive the business forward.
Members of the council’s cabinet will meet on Thursday February 3 to decide whether to approve the plans.
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