Gateway figures far short of projections

The Citizen, 27 October 2000

The extent of the huge financial shortfall in individual memberships, which were to have ensured the future of the Gateway Centre, in St Andrews, has become clear.

A projected figure of £1.5 million worth of memberships were to have been obtained by March 31 of this year, in the ill-fated project, but by the time the due date actually came round, the amount raised only came to £43,951, a spokesperson told the Citizen.

The startling shortfall was revealed this month in a report given to the centre’s unsecured creditors by joint receivers Grant Thornton. The document stated that the original business plan had envisaged the sale of approximately 2000 memberships by the target date of March 31 2000. That, in turn, would have generated approximately £1.5 million.

However a spokesman for Grant Thornton said this week that part of the failure could be put down to the difficulties of selling memberships for the elite St Andrews Golfing Society prior to the building actually being completed.

The joint receivers’ report also said that the major single casualty in the affair would be the secured creditor, Lloyds TSB, Scotland, which is currently due over £5 million.

The spokesman also confirmed that there would be a definite shortfall in the return to the bank.

The centre’s unsecured creditors, a number of unspecified businesses, are also said to be due an estimated £3,419,840.

After making allowances, the final figure is likely to be £2,831,071, but based on present information, Grant Thornton’s say there is “no prospect” of any return to these creditors.

A spokesperson for Lloyds TSB Scotland declined to give any comment on the situation.