COVENTRY City of Culture Trust faces a ‘difficult financial position’ with ‘ongoing cashflow issues’ after recently holding talks with administrators.
The Trust is overseeing a three-year legacy programme in Coventry following the 2021 City of Culture year.
Accounts recorded in March 2022 for the end of the financial year showed a funding shortfall of around £1.5million.
In addition, the wage bill totalled just under £3.8million, a £1.2million increase from the previous financial year.
Coventry City Council helped the Trust with a £1million loan last year.
A council spokesperson said: “Our year as UK City of Culture brought many positives including securing over £90m in external funding to deliver the much-improved public realm work in the city centre and investment in many of the city’s cultural and heritage venues.
“However, we are obviously concerned by the emerging news of the further financial challenges that the City of Culture Trust faces.
The council added it is in discussion with the Trust and its partners about these challenges as they seek to find solutions to minimise the financial impact to ‘deliver the legacy the city needs.’
A Trust spokesperson added: “We continue to proactively work with our partners, stakeholders, funders and creditors to find solutions to these challenges and thank them for their support during this period.
“The trust’s work continues, with our first legacy commission Cosy Creative continuing this February, as well as captivating visitors in the multi-award-winning Life and Work of Frida Kahlo at The Reel Store.”
