11 Welcome to Yorkshire staff made redundant

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.

Welcome to Yorkshire enters administration

Troubled tourism organisation Welcome to Yorkshire has been placed into administration.

In a statement this afternoon, Sir Peter Box CBE, chair of the organisation, said it was with “deep regret” that the board had taken the decision.

He said the impact of covid and the “task of securing sufficient funding” had made the situation at the tourism body “increasingly challenging”.

Sir Peter Box said in his statement:

“The past three years have been incredibly difficult for Board members and staff as we have endeavoured to deal with well-publicised legacy issues.

“These matters, coupled with the impact of covid and the task of securing sufficient funding from the public and private sectors to place WtY on a sound financial footing, have made the situation increasingly challenging.

“The de Bois review of Destination Management Organisations could have created the opportunity for WtY to be given the structure and long-term funding required to move on, grow and develop into the organisation we believe it should be on behalf of Yorkshire and its people.

“Sadly, the decision of the Yorkshire leaders not to commit to a multi-year funding package, whilst understandable, removed that pathway and means that WtY cannot continue in its present form.

“Most importantly, I want to pay tribute to the team of talented and dedicated professional staff who have continued to do remarkable work in the toughest of circumstances to promote Yorkshire’s many attractions to the world.  I offer my heartfelt thanks and wish them well in their future careers.

“I must also place on record my gratitude to those board members who have remained with WtY, working selflessly in a collective effort to save the organisation from closure.

“It is my sincere hope that the public sector will recognise the value of a new regional Destination Management Organisation to build on the many achievements of WtY.

“This can offer our tourism industry the chance to move forward with a focused approach, deliver on regional priorities, and secure the best outcomes for everyone who visits, lives, works and studies in Yorkshire.”

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP have been appointed as joint administrators of Welcome to Yorkshire.

Controversy and cashflow problems

The decision follows a troubled few years for Welcome to Yorkshire.

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

Both 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.

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It also faced allegations from Sir Thomas Ingilby, owner of Ripley Castle and Gardens, that the body had become “completely unaccountable”. Its former chief executive defended the allegations in an interview with the Stray Ferret.

The tourism body’s worries stem back as far as March 2019 when it was hit by controversy after 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.

Paul Scriven, a former leader of Sheffield City Council and a Liberal Democrat peer, told the House of Lords Welcome to Yorkshire had a “culture of toxicity” and misused public funds.

Welcome to Yorkshire chief executive resigns

Welcome to Yorkshire chief executive James Mason has resigned and will leave the organisation next month.

Mr Mason, who has led the tourism body since January last year, will depart on October 22 to take on a new yet-to-be-announced job in the new year.

The news comes less than a month after it was announced the 2022 Tour de Yorkshire had been cancelled.

Mr Mason joined Welcome to Yorkshire after former boss, Sir Gary Verity, resigned in March 2019 on health grounds. Mr Verity later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Speaking about his departure, Mr Mason said “the decision wasn’t an easy one” but that he was “excited” for his new role.

He said:

“Whilst working under difficult conditions at times, there is lots we can be proud of, such as the much-loved Walkshire campaign, the launch of a personal membership and tree planting scheme, as well as the implementation of a tourism recovery plan.

“The brief when I joined was to guide Welcome to Yorkshire towards steadier waters and drastically reduce costs.

“We achieved this despite all the restrictions we faced and never stopped innovating or striving for excellence.

“I’d like to thank everyone for their involvement in trying to bring the Tour de Yorkshire back especially our local authority partners with their continued commitment. These high-profile events will return to the region when the time is right.”

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Chair of Welcome to Yorkshire, Peter Box, thanked Mr Mason for the “commitment and energy” he brought to the role.

He added Welcome to Yorkshire will arrange a board meeting to discuss the future of the organisation.

Mr Box said:

“We would like to thank James for the commitment and energy he has demonstrated during a particularly turbulent time for tourism and for the organisation. When James joined as chief executive almost two years ago there were many challenges to deal with.

“A positive plan was put in place to continue showcasing Yorkshire to the world and despite the covid pandemic adding a new and unexpected level of challenges for the tourism industry, James tackled all issues head-on and worked tirelessly.

“He embraced all aspects of the role passionately and with creativity. A board meeting will be arranged to discuss the next steps for Welcome to Yorkshire.”

Welcome to Yorkshire posts losses of £200,000

The troubled tourism organisation Welcome to Yorkshire lost about £200,000 in two years, according to its latest accounts published this week.

The organisation, which is a limited company, was bailed out last year by Harrogate Borough Council and North Yorkshire County Council, plus other local authorities.

Its accounts for the six months to March 31 2020 and the 18 months to September 30 2019, which were both released on the same day this week, lay bare the organisation’s financial struggles in the aftermath of the resignation of its former chief executive, Sir Gary Verity in March 2019.

The organisation has undergone significant changes since the accounts were published.

The accounts reveal the organisation spent £151,568 on staff termination costs in 2018/19, which covers the period Sir Gary left. A Welcome to Yorkshire spokeswoman told the Stray Ferret the costs referred to one member of staff.

The organisation spent another £71,133 in termination costs in the 2019/20 period.

It also spent £323,000 on legal and professional fees over the combined two-year period.

Asked why the fees were so high, the spokeswoman said the figure included the cost of two independent reports by accountants BDO and solicitors Clarion, recruiting a new chief executive and other one-off costs.

It lost £127,140 in 2019/20 and £71,857 in 2018/19.

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The spokeswoman acknowledged it had been a “difficult time” but added the organisation had undergone “significant operational, staffing, cultural and strategic changes” since the periods covered by the two sets of accounts.

In the last 16 months it has appointed Peter Box as chairman, James Mason as chief executive, introduced an audit committee and governance panel and reduced the workforce by more than half to 24, she added.

The spokeswoman said:

“The accounts were filed after an extended period as a result of issues relating to the coronavirus crisis, including subsequent uncertainty of funding which had previously been assigned from the North and West Yorkshire Business Rates Committee.

“The organisation is focusing on the future, moving forward and supporting the economic recovery of the tourism sector in Yorkshire through the coronavirus crisis and post-pandemic to reopen, recover and rebuild as part of Welcome to Yorkshire’s tourism recovery plan, working closely with the county’s businesses and local authorities.”

Harrogate Borough Council gave Welcome to Yorkshire £31,000 last year to help keep it afloat. North Yorkshire County Council awarded it £290,000.