The Charity Commission is assessing concerns raised about the governance and financial management of a leisure charity that closed suddenly.
Last week, several local authorities announced that Active Nation UK Limited had gone into administration and ceased trading immediately, effective 2 April.
Active Nation operated several facilities on behalf of councils including City of Lincoln’s Yarborough and Birchwood leisure centres
In an email to supporters, Active Nation said it had decided to close those centres “due to the ongoing utility crisis and the challenges it has created”.
A spokesperson for the regulator told Civil Society that it had opened a compliance case into the charity to assess concerns about its “governance and financial management”.
“We’ll be engaging with the charity’s trustees on this matter,” they said.
According to the commission’s website, Active Nation recorded a total income of £14.4m for the year to 31 March 2023, with its reporting for 2023-24 overdue by 68 days.
It recorded annual deficits of around £1m for four consecutive years and employed 266 people.
Charity refused financial support
Active Nation said following discussions with the City of Lincoln Council, “we regret to inform you that no alternative providers have been identified for transferring services, which means the centres will remain closed for the foreseeable future”.
“We’re deeply disappointed by this outcome and would like to take this opportunity to express our sincere gratitude to all Lincoln residents for your support since 2007,” it said
City of Lincoln Council said it was doing “everything we possibly can to repossess our buildings and get the city’s leisure facilities operational again as soon as possible”.
“Active Nation had made the council aware that they were operating under difficult circumstances, as are all leisure facilities across the country,” its statement reads.
The council said it offered Active Nation a financial assistance package of nearly £500,000 in January, which the charity declined.
“Active Nation later assured us that they would be able to continue trading without the need for this intervention,” the council added.
“This proved to be untrue. It’s now our aim to find an interim provider and get the leisure centres back open once again.”
Council ‘taking urgent legal advice’
Rushmoor Borough Council in Hampshire said it was taking “urgent legal advice and considering future options” for the now-closed Alpine Snowsports centre which Active Nation operated on its behalf.
Active Nation also provided back-office services to Active Torridge and handled payroll and membership subscriptions for Torridge District Council’s leisure centres in Northam, Great Torrington and Holsworthy.
Torridge District Council in Devon said it was working with Active Torridge “to ensure that all memberships and staff payments will be transferred from Active Nation”.
Steve Hearse, the council’s chief executive, said: “Torridge District Council is working closely with Active Torridge to do all we can to ensure that all staff and members avoid any potential disruption following the news that our sub-contractor, Active Nation, has ceased trading.
“Our contract with Active Nation is purely for the supply of back-office services, so all our leisure centres will remain open to the public as usual.
“We’re doing all we can to minimise any potential disruption for employees and members.”
Active Nation’s closure has also affected several leisure facilities, alongside bookings of sports pitches and facilities, in Southampton.
Southampton City Council said it was working with Places Leisure, its main contractor, “to ensure the least amount of disruption” and transfer of all memberships, bookings and staff.
“Our priority will be to ensure the sites remain open and that staff are supported through this difficult time,” it said.
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