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North Wales Live
13-05-2025
- Business
- North Wales Live
Council spent £62k on leisure firm sale advice before deal collapsed
Denbighshire Council has confirmed it spent £62,000 on expert advice for the now collapsed deal to sell its leisure company. The council released the figure after trade union Unison criticised the authority for its "botched" plan to sell Denbighshire Leisure Ltd. The trade union commissioned an independent report carried out by the Association for Public Service Excellence (APSE), citing a "lack of transparency" in the council's "consultation and competitive tender processes". Unison says the report describes the decision-making process behind the failed £1.5m deal as "fundamentally flawed". The council has hit back at the claims, saying they could have answered many questions within the report if they had been involved in the production of the document. At a behind-closed-doors meeting in March, councillors backed the deal to sell DLL, with the council's eight leisure centres and other venues, with backing from private equity investor, Merseyside-based River Capital, by 20 votes to 17. The council claimed the deal would safeguard DLL's future, but the sale collapsed at the end of April, with the investors unhappy over leaks. Sign up for the North Wales Live newsletter sent twice daily to your inbox. The union later argued public money spent on leisure in Denbighshire should not go to companies looking to extract profit from the local community for a "quick buck". Unison Cymru/Wales regional organiser Tony Jones said: 'This report destroys the credibility of the decision-making process around the sale of Denbighshire's leisure facilities. 'It will be uncomfortable reading for some. But residents will question whether decisions were being made in their best interests and who was going to benefit most from the sale. 'The council spent huge sums of public money refurbishing these leisure facilities but then failed to explore all the options before deciding to privatise them.' He added: 'Now the original sale has collapsed, councillors should ensure they have a controlling interest in leisure facilities. Every penny spent on leisure in Denbighshire should be for the benefit of local people, not handed to company shareholders looking to make a quick buck.' A statement from Denbighshire County Council said: 'The council has been made aware of a document produced by APSE Solutions and commissioned by Unison. This document was prepared without the council's involvement or consent. 'The document is therefore based on the instructions given by Unison and specifically states that it should not be relied upon by any other party. The document contains a disclaimer to the effect that it does not constitute legal advice, does not draw conclusions and does not make recommendations. 'The document raises many questions which could have been answered had APSE Solutions or Unison involved the council in the production of the document. The council committed to closer working with unions as proposal(s) progressed and arrangements had been put in place prior to the council being informed that it would not proceed. 'To be clear, in considering this proposal, the council sought independent, professional advice from external advisers. This advice covered a number of legal and other regulatory issues including: The council's power to enter the transaction The procurement and contract issues to be considered Employment and human resource matters including pension provision and the Code of Practice on Employment Matters Taxation Subsidy control Property issues "The council also received independent advice as to the valuation of the company and other alternative options that may be available for the future of the company. The council has been asked about the costs of this proposal to date. The council has spent £62K to date on independent advice.' The statement added: 'Although the proposal that generated this advice will not now proceed, much of that advice will be relevant to alternative models for the company and is not therefore an abortive cost. It should also be noted that this advice was sought in anticipation of a significant capital receipt of £1.5 million to be received by the council for the sale of the shares and the revised contractual relationship would not only have prevented existing costs from increasing, but would result in the fee paid by the council for the provision of leisure services reducing in each year of its operation over a ten-year period by 10%. "This 10% reduction in year two would be £152k increasing cumulatively to a reduction of £930k by year 10.'
Wales Online
13-05-2025
- Business
- Wales Online
Council spent £62k on leisure firm sale advice before deal collapsed
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Denbighshire Council has confirmed it spent £62,000 on expert advice for the now collapsed deal to sell its leisure company. The council released the figure after trade union Unison criticised the authority for its "botched" plan to sell Denbighshire Leisure Ltd. The trade union commissioned an independent report carried out by the Association for Public Service Excellence (APSE), citing a "lack of transparency" in the council's "consultation and competitive tender processes". Unison says the report describes the decision-making process behind the failed £1.5m deal as "fundamentally flawed". The council has hit back at the claims, saying they could have answered many questions within the report if they had been involved in the production of the document. At a behind-closed-doors meeting in March, councillors backed the deal to sell DLL, with the council's eight leisure centres and other venues, with backing from private equity investor, Merseyside-based River Capital, by 20 votes to 17. The council claimed the deal would safeguard DLL's future, but the sale collapsed at the end of April, with the investors unhappy over leaks. Sign up for the North Wales Live newslettersent twice daily to your inbox. The union later argued public money spent on leisure in Denbighshire should not go to companies looking to extract profit from the local community for a "quick buck". Unison Cymru/Wales regional organiser Tony Jones said: 'This report destroys the credibility of the decision-making process around the sale of Denbighshire's leisure facilities. 'It will be uncomfortable reading for some. But residents will question whether decisions were being made in their best interests and who was going to benefit most from the sale. 'The council spent huge sums of public money refurbishing these leisure facilities but then failed to explore all the options before deciding to privatise them.' He added: 'Now the original sale has collapsed, councillors should ensure they have a controlling interest in leisure facilities. Every penny spent on leisure in Denbighshire should be for the benefit of local people, not handed to company shareholders looking to make a quick buck.' A statement from Denbighshire County Council said: 'The council has been made aware of a document produced by APSE Solutions and commissioned by Unison. This document was prepared without the council's involvement or consent. 'The document is therefore based on the instructions given by Unison and specifically states that it should not be relied upon by any other party. The document contains a disclaimer to the effect that it does not constitute legal advice, does not draw conclusions and does not make recommendations. 'The document raises many questions which could have been answered had APSE Solutions or Unison involved the council in the production of the document. The council committed to closer working with unions as proposal(s) progressed and arrangements had been put in place prior to the council being informed that it would not proceed. 'To be clear, in considering this proposal, the council sought independent, professional advice from external advisers. This advice covered a number of legal and other regulatory issues including: The council's power to enter the transaction The procurement and contract issues to be considered Employment and human resource matters including pension provision and the Code of Practice on Employment Matters Taxation Subsidy control Property issues "The council also received independent advice as to the valuation of the company and other alternative options that may be available for the future of the company. The council has been asked about the costs of this proposal to date. The council has spent £62K to date on independent advice.' The statement added: 'Although the proposal that generated this advice will not now proceed, much of that advice will be relevant to alternative models for the company and is not therefore an abortive cost. It should also be noted that this advice was sought in anticipation of a significant capital receipt of £1.5 million to be received by the council for the sale of the shares and the revised contractual relationship would not only have prevented existing costs from increasing, but would result in the fee paid by the council for the provision of leisure services reducing in each year of its operation over a ten-year period by 10%. "This 10% reduction in year two would be £152k increasing cumulatively to a reduction of £930k by year 10.' Public notices in your area
Rhyl Journal
13-05-2025
- Business
- Rhyl Journal
Council given ‘independent advice' on Denbighshire Leisure sale
At a behind-closed-doors meeting on March 26, council members voted 25-18 in favour of selling Denbighshire Leisure Ltd (DLL) to the private sector. DLL was in the process of being sold to Merseyside-based private equity firm River Capital for £1.5million, but it was confirmed on April 30 that the investor has now pulled out. Yesterday (May 12), the council published a 'position statement' on the matter, in which it also addressed a 17-page report by the Association for Public Service Excellence (APSE), and commissioned by public service union UNISON, which heavily criticised the proposal. It stated: 'This document was prepared without the council's involvement or consent. 'The document is, therefore, based on the instructions given by UNISON, and specifically states that it should not be relied upon by any other party. 'The document contains a disclaimer to the effect that it does not constitute legal advice, does not draw conclusions and does not make recommendations. 'The document raises many questions which could have been answered had APSE or UNISON involved the council in the production of the document. 'The council committed to closer working with unions as the proposal progressed, and arrangements had been put in place prior to the council being informed that it would not proceed.' The council said it sought independent, professional advice when considering the proposal to sell off DLL. This included advice on a number of issues, such as the council's power to enter the transaction, procurement and contract issues, employment and pension matters, taxation, subsidy control and property issues. Independent advice was also received regarding the valuation of DLL, the council said. Its statement added: 'The council has been asked about the costs of this proposal to-date. The council has spent £62,000 to-date on independent advice. 'Although the proposal that generated this advice will not now proceed, much of that advice will be relevant to alternative models for the company and is not therefore an abortive cost. 'It should also be noted that this advice was sought in anticipation of a significant capital receipt of £1.5m to be received by the council for the sale of the shares and the revised contractual relationship would not only have prevented existing costs from increasing, but would result in the fee paid by the council for the provision of leisure services reducing in each year of its operation over a 10-year period by 10 per cent. 'This 10 per cent reduction in year two would be £152,000, increasing cumulatively to a reduction of £930,000 by year 10.' Prior to the March 26 meeting, meanwhile, councillors were invited to two workshops about the proposal. The council said the decision to approve the proposal on March 26 followed a 'lengthy debate' and 'substantial information supported by professional advice'. On the decision to hold the meeting behind closed doors, the council said: 'The investor and DLL operate in a commercial world, and it was considered that, in order to protect the commercial interests of all parties, the proposal should be considered in private. 'This was confirmed by a vote by elected members in accordance with the law.' The council concluded by saying it 'remains committed to helping DLL to find a way to continue this success'.
Fashion Network
12-05-2025
- Business
- Fashion Network
Luxe Collective shuts down after devastating break-in and stress toll on founders
'After a year-long fight after we were broken into last year, in which both me and my brother were doing all we could just to get us through to the next day, we are no longer able to continue. 'The last year has been the most painful in my life and to be honest, whilst I'm talking to you now, I'm overwhelmed with relief – I've never been so mentally and physically drained, stress and anxious.' He also said the break-in 'ultimately affected my leadership and strategic decision-making'. He explained that the break-in wasn't the only reason for the closure but it was linked because the stress meant he made choices that weren't 'the right ones'. He didn't specify those choices but added that 'I take 100% accountability for this – it's on me'. The business had been set up in 2018 by the Merseyside-based brothers Ben and Joe Gallagher with business partner Oliver Millar also coming on board. They started buying items from eBay and Depop and built up a thriving resale business with a reputation for quality and authenticity. It received the £100k investment for a 3% stake in the firm on the BBC TV show Dragons' Den. Despite the company having shared CCTV video of the robbery, the case was eventually closed with nobody being apprehended. While the company last autumn received an insurance payment to cover the value of the stock and was therefore able to pay out anyone who was selling their secondhand fashion through the platform on consignment, it wasn't the end of the problems. We've already mentioned the stress it brought with it. But just like any second-hand or antiques business, a huge issue is finding the stock to sell and Ben Gallagher had issued a social media appeal asking if anyone has 'anything to sell or might know someone who might have something to sell, go on our website, fill out a form and sell your items to us'. All employees have now been made redundant with Gallagher saying the thieves 'haven't just ruined the company… They've ruined the livelihoods of not just me and my brother, but all the amazing staff that we have had to make redundant and who've lost their jobs in the process.' But in a TikTok video, he also listed the firm's achievements, including creating business that 'was recognised all over the world and got the whole industry talking about us'. And he said the firm generated £30 million+ in revenue from a standing start with zero investment, also achieving over three million social media followers and a billion views. And in a touching moment he said it also strengthened his relationship with his brother.
Fashion Network
12-05-2025
- Business
- Fashion Network
Luxe Collective shuts down after devastating break-in and stress toll on founders
'After a year-long fight after we were broken into last year, in which both me and my brother were doing all we could just to get us through to the next day, we are no longer able to continue. 'The last year has been the most painful in my life and to be honest, whilst I'm talking to you now, I'm overwhelmed with relief – I've never been so mentally and physically drained, stress and anxious.' He also said the break-in 'ultimately affected my leadership and strategic decision-making'. He explained that the break-in wasn't the only reason for the closure but it was linked because the stress meant he made choices that weren't 'the right ones'. He didn't specify those choices but added that 'I take 100% accountability for this – it's on me'. The business had been set up in 2018 by the Merseyside-based brothers Ben and Joe Gallagher with business partner Oliver Millar also coming on board. They started buying items from eBay and Depop and built up a thriving resale business with a reputation for quality and authenticity. It received the £100k investment for a 3% stake in the firm on the BBC TV show Dragons' Den. Despite the company having shared CCTV video of the robbery, the case was eventually closed with nobody being apprehended. While the company last autumn received an insurance payment to cover the value of the stock and was therefore able to pay out anyone who was selling their secondhand fashion through the platform on consignment, it wasn't the end of the problems. We've already mentioned the stress it brought with it. But just like any second-hand or antiques business, a huge issue is finding the stock to sell and Ben Gallagher had issued a social media appeal asking if anyone has 'anything to sell or might know someone who might have something to sell, go on our website, fill out a form and sell your items to us'. All employees have now been made redundant with Gallagher saying the thieves 'haven't just ruined the company… They've ruined the livelihoods of not just me and my brother, but all the amazing staff that we have had to make redundant and who've lost their jobs in the process.' But in a TikTok video, he also listed the firm's achievements, including creating business that 'was recognised all over the world and got the whole industry talking about us'. And he said the firm generated £30 million+ in revenue from a standing start with zero investment, also achieving over three million social media followers and a billion views. And in a touching moment he said it also strengthened his relationship with his brother.
