Jobs to go as Telford College closes leisure business while buyer is sought

In total 15 full-time jobs will go, along with seven 'casual' staff.

The closure includes the Life @ Whitehouse gym and spa, the Sir Stephen’s Brasserie, and the conferencing facilities.

It comes as the formal sale of the Whitehouse Hotel to R & A Hotels Group was officially completed. The hotel will continue to operate as a standalone business and is not affected by the college's announcement.

The college, which has been trying to sell the facilities for some time, says it cannot attract a buyer while the premises is still run as a business with employees.

The move will also raise question marks for AFC Telford United, which uses the facilities at the site within the main stand, such as the dressing rooms.

In a statement the college said it had granted "temporary access" to ensure the club's matches can go ahead.

The leisure facilities, along with the adjoining Whitehouse Hotel, were bought by New College Telford in 2014 with the intention of being used as a base to launch hospitality and catering courses.

But this never materialised, and they became surplus to requirements following the merger with Telford College of Arts and Technology.

In its statement Telford College said it felt there was no educational benefit to retaining them, and has been seeking to sell the Whitehouse leisure facilities ever since.

It said: "Potential buyers say it is not a viable investment in its current style of operation, and are concerned with the loss-making position.

Focus

"However, two expressions of interest have been received for vacant possession of the building, so after careful consideration, the decision has been taken to pursue these further."

Graham Guest, Telford College’s principal and chief executive, said: “Our focus is education and training, and since I became principal in May 2017 we have tried to find a solution. Unfortunately we have been unable to identify any potential buyers.

“The cost of operating the facilities significantly outweighs their income, and we reached the point where keeping them open was simply no longer financially viable.

“We have therefore reached the difficult decision to close the facilities, so that we can pursue the expressions of interest received for vacant possession of the building.

“This decision has not been taken lightly, and has only been made as an absolute last resort.”

Staff were informed of the closure on Monday afternoon, and a consultation period is now under way

The gym and brasserie has closed with immediate effect, while conference and meeting facilities will remain open until February 9.

Two private businesses based at the site are being allowed to continue using the premises for a temporary period, and the college said it has offered them help in trying to relocate.

The college said it is also speaking to people and organisations that have bookings at the site, and will try to relocate them to its Haybridge campus.

Mr Guest said: “As you can imagine, this has been a painful and difficult decision to make.

“But on top of the day-to-day running costs, we were facing significant refurbishment costs in the spa area alone, including £10,000 on the sauna, £36,000 to bring the pool up to standard, and more than £1,500 on new pool lights.”