Penarth Pier Pavilion was leased for 125 years by the Vale of Glamorgan Council to the struggling , not-for-profit-company Penarth Arts and Crafts Ltd

It’s emerged that the directors of Penarth Arts and Crafts (a.k.a. PACL) – the “not for profit” company which holds the 125 year lease on Penarth Pier Pavilion – are personally standing security for a new loan taken out by the company.

The loan was taken out from the Royal Bank of Scotland’s Social and Community Capital Fund  at the end of July in order to provide increased working capital – specifically for catering developments.

Penarth Pier Pavilion

PACL announced in the summer that it had been “successful in a bid to the Royal Bank of Scotland, under its Social and Community Capital Fund for loan funding”.

The loan could not be secured against the Pier Pavilion Building itself –  because that is owned by the Vale of Glamorgan Council –  so it is the  directors of Penarth Arts and Crafts Ltd who have had to guarantee to pay back the money in the event of the company not being able to.

Penarth Pier Pavilion

In the event of Penarth Arts and Crafts failing, or going into receivership, the Royal Bank of Scotland’s Social and Community Capital Fund has the option to take over the running of Penarth Arts and Crafts Ltd  – and in that case would end up running Penarth Pier Pavilion.

The typical size of loan provided by the RBS scheme is between £30,000 and £750,000. The Penarth Arts and Crafts loan is said to be for a “five-figure sum

One of the fatal flaws in the original business plan of Penarth Arts and Crafts Ltd was the failure to make adequate provision for working capital to develop and grow the underlying business. 

To create more working capital  Penarth Arts and Crafts in July 2013  had launched a “membership scheme” which invited local residents to become “members” of the pavilion  for £35 a head per annum (an amount later increased to £40).   “Members” of Penarth Pier Pavilion were to be entitled to a range of special Pavilion-related benefits and the first 500 “Founder Members” to enroll were to have  enhanced benefits conferred on them including 2 free Pavilion Cinema tickets, plus free admission to “members’ screenings”,  priority booking for special events , a “programme by post” service and a 10% discount in the Pavilion shop and bar.

The now-defunct  Pavilion membership scheme was launched in June 2013 – before the restoration of the Pier Pavilion was completed. The scheme – and the “Life Membership” option it offered – died the death

Other inducements included a  “Limited edition tote bag”, a selection of postcards & “Life membership” .

By October 2013 – 2 months before the Pavilion re-opened – all 500Founder Memberships” had been sold, netting the company at least £17,500 in just 6 months – a useful boost to working capital.

By December 2013 Ordinary Memberships of the Penarth Pier Pavilion were being marketed over the counter at the newly-opened pavilion at £40 each.

In the event however “Life membership” turned out to have a disappointingly short time-span .

In February 2017  a member trying to establish the status of the scheme –  and when their next subscription was due  – was told that an “announcement will be made shortly” . In due course there WAS an announcement – but not what was expected. At the end of February that year the Pavilion announced the closure of the Pavilion for three days out of every seven and the indefinite closure of the Pavilion Cinema – thus changing the whole basis of “membership” and curtailing the “benefits” originally promised. The web site now makes no mention of any membership scheme.

Penarth Pier Pavilion

Since the crisis of last year however  the Pavilion has resumed full opening hours, the cinema operation has been taken over by SnowCat Cinema, a number of board members have been replaced,  Washington Tea has been brought on board to manage the Pavilion Cafe and a new pavilion manager, – Marta Ghermandi Lithgow – joined the company last month.

The next crucial step in the recovery of Pier Pavilion will be the appointment of a new chair of the Penarth Arts and Crafts Ltd later this month.

About NewsNet

Penarth Daily News email address newsnet@sky.com. Penarth Daily News is an independent free on-line fair and balanced news service published by NewsNet Ltd covering the town of Penarth in the Vale of Glamorgan, Wales, UK. All our news items are based on the information we receive or discover at the time of publication and are published on the basis that they are accurate to the best of our knowledge and belief at that time. Comments posted on the site by commentators reflect their opinions and are not necessarily shared, endorsed or supported by Penarth Daily News.
This entry was posted in Penarth Daily News. Bookmark the permalink.


  1. Andrew Jones says:

    It should me made clear that Snowcat hasn’t taken over the ‘operation of the cinema’. Snowcat hires the mothballed cinema on a number of nights a month to screen old/niche films. This nowhere near fills the void lost when PACL closed the cinema 18 months ago. The fight continues to get it reopened which is a top priority for Penarth residents. Hopefully with a new Chair, manager etc this can be achieved

  2. Restaurant Critic says:

    As the loan was for Catering Facilities what improvements have been made so far? Surely Washington Tea Rooms would have a better placed with being responsible for the loan rather than the inexperienced directors of PACL who haven’t managed to run the business profitably so far.

  3. Restaurant Critic says:

    It’s obvious isn’t it? Directors or anyone for that matter, have to pay back what is borrowed. Really, you couldn’t borrow some money from a friend and expect not to pay it back. A more interesting article would have named who was specifically responsible. Who’s that?

  4. Utterly amazingly… a Director of PACL approached me a week ago, as I sat on my garden wall and asked…. “what would you do “ Nicki …to get us out of the mess… made by the chair and directors …of course. A paid person of 50,000 salary for one, a cinema moth balled, no integrated strategy, no accountability, a near bankrupt situation. I could continue. I told him I would fire them and hold them all personally accountable. But let’s find a positive way out and through this all together for I live and love Penarth.

Comments are closed.