AN ARTS centre in the Scottish capital is facing further trouble after being hit with a “winding up” legal action.
HMRC has begun proceedings against the management company behind Edinburgh’s Summerhall over unpaid tax allegations.
We previously told how a three-year lease had been secured for the venue after its future was cast into doubt earlier this year.
It is understood the winding up petition may affect Summerhall’s ability to stage and host certain events, as well as impact on existing tenants.
Senior figures at Summerhall, which has been running since 2011, previously raised concerns that arts and culture in Scotland are "drowning under the weight of an economic crisis."
The future of Summerhall has been increasingly uncertain since May when it emerged that the entire site had been put up for sale by Oesselmann Estate Limited, an Isle of Man-based company of which McDowell is a director.
Summerhall Arts, a new arts charity formed last year, is trying to raise £150,000 through a crowdfunding campaign to try to maintain the current levels of programming at the venue.
It is hoping to secure a lease agreement with OEL to keep the venue running for the foreseeable future after it changes hands. A new owner of the site is yet to be announced.
One of the biggest privately-owned multi-arts centres in Europe, Summerhall is home to more than 120 businesses and freelances, and attracts an audience in excess of a million each year, including 250,000 in August alone.
McDowell said: “Summerhall Management has had a winding up petition presented against it by HMRC. “The petition is in relation to unpaid Corporation Tax. We believe there is no corporation tax due to HMRC and have been working with professional advisors to address and resolve matters with HMRC.
“Summerhall Management is defending the proceedings raised and we hope a resolution can be achieved which will allow us to deal with this and move on quickly.
“At this time, we must follow a very strict set of guidelines imposed upon us of what we can and cannot do, please bear with us whilst we work to fully understand the situation.
“The team are already in communication with those we work with who may be affected by this action, but we intend to trade as best we can, and in line with what is permissible, whilst we defend this action.
“The landlord, for whom we manage the building for on their behalf, have also been made aware and will be in direct communication with their tenants as required.”
Sam Gough, chief executive of both Summerhall Management Ltd and Summerhall Arts, said: “We are taking legal advice on what we can and can’t do. Once we understand that, we will getting in touch with everyone affected.
“During this process, which could take a number of weeks, it means that some things will be able to go ahead, some things will have to go ahead differently and some things will have to be cancelled.
“Summerhall Arts is unaffected by any of this, because it is an independent charity. The discussions on the lease are still going on in the background.”
