Newham Council’s London Pleasure Gardens bill reaches £4.1m
PUBLISHED: 16:26 22 March 2013 | UPDATED: 16:26 22 March 2013
Doomed Docklands attraction The London Pleasure Gardens has ended up costing the council more than £4million.
The scheme, launched as part of the Meanwhile London competition to find temporary uses for four sites in Newham, was meant to turn the Royal Docks into a thriving arts and entertainment festival.
But events were cancelled and predicted visitors failed to turn up and operators London Pleasure Gardens Ltd went into administration just a week after the Olympic Games started in June.
The operating company was given a £3.3million loan from Newham Council - but its bill has increased by another £800,000 because of interest and costs.
Administrators Deloitte published a six month update report on March 6 stating that, as expected from an original report published in October last year, there would not be enough cash to repay Newham Council yet.
Credit from the sale of London Pleasure Garden’s assets went towards paying off Deloitte’s £1million administration bill but the firm said they would only take £400,000 and would waive the rest.
The Redundacy Payments Office are still processing around £255,000 in claims made by former London Pleasure Gardens employees.
A Newham Council spokesperson said: “We are disappointed that the London Pleasure Gardens failed to bring the planned jobs and visitors to the area.
“The Council is continuing to discuss the future use of the site with relevant parties and remains confident that we will see a return on our investment.”
If you value what this story gives you, please consider supporting the Newham Recorder. Click the link in the orange box above for details.