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Mar 2022

Last Updated: 22/03/2022

Business

11 Welcome to Yorkshire staff made redundant

by Calvin Robinson

| 22 Mar, 2022

Administrators for Welcome to Yorkshire also say it is 'engaging with stakeholders' on whether events the tourism organisation was due to stage can still go ahead.

Photograph: Welcome to Yorkshire

Nearly half of the total number of staff at Welcome to Yorkshire have been made redundant after the organisation was placed into administration.

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP were appointed joint administrators of the troubled tourism body earlier this month.

The move followed “increasingly challenging” financial circumstances for Welcome to Yorkshire, which faced "a task of securing sufficient funding”, according to chairman Sir Peter Box CBE.

In a statement, the administrators said that 11 staff had now been made redundant with 12 retained.

The statement added:

“Welcome to Yorkshire had a number of ongoing projects at the time it was placed into administration.

"The joint administrators are currently engaging with the various stakeholders to determine whether these projects can continue in the short-term whilst they seek to establish whether a buyer can be sought for the business and assets.

“Whilst this process is ongoing, the business is operating using a reduced workforce. Regrettably 11 employees were made redundant on Tuesday with the remaining 12 members of staff currently being retained.

“The joint administrators are aware that Welcome to Yorkshire has a large membership base and the subscription position will be reviewed in the coming days. The joint administrators have been advised that all advance subscriptions were held separately by Welcome to Yorkshire. All relevant parties will be contacted in due course.

“Unfortunately a number of events that were due to take place in the coming weeks will now be cancelled – affected parties will be contacted as soon as possible.”

Controversy and cash flow problems

Administration followed a troubled few years for Welcome to Yorkshire.

In September, James Mason resigned as chief executive and the body had to approach local councils to help bail it out financially during the covid pandemic in 2020.

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Harrogate Borough Council and North Yorkshire County Council gave Welcome to Yorkshire £31,000 and £290,000 respectively to plug its £1.4 million funding gap.

The body also had to take out a £500,000 loan in September 2019 from North Yorkshire County Council to keep it afloat.

In March 2019 there was controversy when former boss, Sir Gary Verity, resigned on health grounds. He later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500.

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11 Welcome to Yorkshire staff made redundant

Controversy and cash flow problems

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