Cultural hub ‘in serious financial difficulty’

A cultural hub in Derby says it must "transform" to remain viable, conceding that it is in "serious financial difficulty".

QUAD, which has showcased contemporary art exhibitions, film, and cinema in the city since 2008 and provided educational and creative activities, said it has been "working tirelessly" to remain open after acknowledging last year that it was struggling financially.

"However, the external environment continues to deteriorate beyond our most recent forecasts, meaning that our income is too low, and costs continue to be challenging," a statement issued by the National Portfolio Organisation said.

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"Following a number of recent board meetings to discuss the continuing challenges, it has become clear that the charity remains in serious financial difficulty. This is despite the incredible efforts of our staff, partners, sponsors and volunteers.

"The situation is not a unique one. The direct impact of COVID-19 and the reduced audience numbers returning post-pandemic, along with the continued impact of the cost-of-living crisis, have all contributed to the position QUAD and other cultural venues nationwide find themselves in.

"With the support of Derby City Council, Arts Council England, the British Film Institute, and other stakeholders, we are reviewing how the charity can move forward in a sustainable way. We are doing that transparently and in consultation with our people."

A recent investigation by Arts Professional and MyCake, a financial benchmarking company that provides insights and advice to third-sector organisations, found that arts organisations making up the 2023-26 National Portfolio were collectively in the red by £63.1m in 2023.

For the financial year ending March 2023, QUAD – which receives annual funding of £466,176 from ACE – had an income of £2.38m but had an expenditure of £2.72m, meaning it spent 14.6% more than it had coming in.

Arts Professional's investigation found that nearly one in five NPOs (18%) had expenditure levels 20% or more above their income.

In recent months, some NPOs have reported taking significant measures due to financial pressures, with Wateremans Arts Centre in Brentford closing its venue and the Institue of Contemporary Arts in London making redundancies.

'Time to transform'

Mark Gregory, QUAD Chair of the Board of Trustees, said: “For the last 15 years, QUAD has been an integral part of Derby, along with our fellow cultural venues. A vibrant cultural offering is a key enabler of the regeneration of the city, and it is really important that QUAD is part of that.

"However, it is time for us to transform to do that sustainably. We will continue to work with our funders and stakeholders to seek out options to move forward and, really importantly, care for our people in any way we can during this difficult time.”

Writing on X, Derby City Council said it was "concerned" about QUAD's current financial challenges and said it would continue to work with the organisation to help it become sustainable, as well as with ACE and other cultural bodies to support the sector.