Preston Guild Hall: legal deal paves the way for reopening of the mothballed city venue as “bright future” is predicted

The Lancashire Post can reveal that Preston City Council is now poised to start drawing up options for how to get the much-missed venue back in business.

The authority’s leader, Matthew Brown, hailed what he described as the “bright future” that now beckons for the 2,000-capacity facility whose sudden shutdown in May 2019 deprived the city of one of its key attractions.

The business community has also welcomed the return of what they likened to a missing piece in Preston’s cultural offering.

However, the landmark venue is not yet on the verge of welcoming acts and audiences back through its doors - with a raft of work needing to be done first in order to bring the building up to the necessary standard after its lengthy closure.

That unexpected hiatus in the Guild Hall’s history started nearly four years ago, when the company running it, Preston Guild Hall Limited - which was owned by prominent city businessman Simon Rigby, who later died in August 2020 - fell into administration amid claims that a plethora of promoters had not been paid for shows staged there.

Just a month later, the city council - which had transferred the venue to Mr. Rigby for a pound in 2014 after concluding that it could no longer afford to operate it - retook control of the site, prompting the protracted legal battle which has now come to an end.

Simon Rigby was one of multiple claimants against the authority in a case to determine whether the town hall had acted legally in seizing the property. As the Post reported in January last year, Mr. Rigby’s estate opted not to continue to pursue what the late entrepreneur had previously said was a £9m claim - but other entities, including 11 subsidiaries of Preston Guild Hall, pressed ahead with their action.

Preston City Council has now revealed that it has reached “terms of settlement” with all of the outstanding claimants - the details of which are confidential under that agreement.

While it had been locked in litigation, the authority had been unable to comment on the future of the Guild Hall, amid a growing public clamour for it to do so.

However, that enforced silence has now ended with the conclusion of the legal proceedings, enabling Cllr Brown to announce that the authority “will be exploring all options in order to give the building a new lease of life and a viable future”.

“Preston’s iconic Guild Hall can now look forward to a bright future once more. The much-loved [venue] is vital to the economy of the city and we know that our residents will be glad to hear the good news,” the Labour leader added.

The Post can now reveal the next steps in what is likely to be the relatively lengthy process of restoring the Guild Hall – which used to employ 100 people – to its place at the heart of the city’s cultural gems.

First, town hall officers will develop a range of potential operating models for the venue which will be presented to councillors, who will make the final decision on how best to proceed. It is understood that a report setting out options and a business case is unlikely to be ready until after May’s local elections.

Chief executive Adrian Phillips told the Post that the council was not “ruling anything out” at this stage - although a return to the days of the authority running the facility itself seem unlikely. That was how the business operated for the first forty years of its existence after opening in 1973. However, as austerity bit in the early 2010s, the council could no longer afford the £1m subsidy that was required to keep the 2,034-seat Grand Hall and the 780-capacity Charter Theatre going.

“That sort of funding is in no way sustainable - we couldn't do it then and we can't do it now, so we are looking at creative solutions,” Mr. Phillips explained.

“[In the past, councils] had the ability to build something of the size and scale [of the Guild Hall] and to operate it - but we've now got to make something work within the modern constraints that we have.

“Members will want to look at a variety of options and it's unlikely that there will be a dozen [different] types of model - but we need to provide [them] with choices. We have a range of [possibilities] that we are looking at in great detail - some of which we may need some external advice on.”

For that reason, the authority is cautioning against any public expectation that people might be able to book tickets for events at a reopened Guild Hall in the very near future.

Mr. Phillips added: “You need expert management as well - the running of a venue of that type [requires] you to understand the market and booking acts and content. [Promoters are planning] two years in advance, so it's a gradual process - you can't just fill [a schedule]...in a matter of weeks.”

Meanwhile, the authority has also had to commit to a raft of works - including fire safety upgrades - that will have to be carried out before the Guild Hall can reopen on a full-time basis, although it has been used sporadically during its closure.

The Post understands that money for renovations is available within the council's wider capital programme - which stands at £104m in the five years to 2026/27 - although the Guild Hall was not specifically highlighted as a standalone project item when the authority set its budget last month.

It is also hoped to attract more tenants to the ground floor shopping arcade, which already had a number of vacancies before the closure of the theatre space four years ago. It is currently temporarily hosting the Harris Library, while the museum building in which it usually stands undergoes a multi-million pound refurbishment.

The Review cocktail bar, The Dance Workshop, Carol May’s School of Dance, Beat Radio and an IT resource centre complete the line-up of units which are occupied at the moment.

Adrian Phillips acknowledged that it would be “a significant task” to deliver a “sustainable and profitable” future for the Guild Hall, which he said was of importance not just to Preston, but the wider region.

However, he added: “We are clear that we have the focus on it and the motivation to do the work.

[The Guild Hall] has got to be resilient. None of us can guarantee things forever, but we absolutely want something that is going to work for the city.

“We hope to have something more to announce in the not too distant future.”

‘GUILD HALL HAS BEEN THE ELEPHANT IN THE ROOM'

Business groups have welcomed the long-awaited news that plans can now be made for the future of the Guild Hall - and what that will mean for the local economy.

John Chesworth, chair of the Preston Partnership - a 100-member organisation that works closely with Preston City Council and the University of Central Lancashire - said that the venue’s absence was an obvious gap in the ongoing “cultural renewal” of Preston, which has been spearheaded by projects like the refurbishment of the Harris Museum and the creation of the forthcoming Animate cinema and leisure complex.

“It’s almost been like the elephant in the room - where are the shows? Where do we go to watch a band or a concert or see comedians and plays? Whilst some people have [asked] if the Guild Hall is fit for purpose, at least when it was open, we had people coming into the city - including from outside [Preston] - and experiencing the bars and restaurants in the city centre,” Mr. Chesworth said.

He added that the lack of a performance space had been keenly felt by those hospitality businesses that heavily depended on it.

“The night-time economy [outlets] are saying that they have a good Saturday, but Fridays aren't what they used to be and the rest of the week is a real struggle.

“What Preston’s done well over the years is [develop] a city living strategy - there are a lot more people living in the centre of Preston, young people who need something to do.

“We don't want them to be jumping on the train down to Manchester. There will always be that [element], however we should have an offering here - and this is just a great opportunity to relaunch it.

“I think it will be a challenge, but it's one that the city has to rise to. A fundamental part of the investment plan is to renew the cultural offering and so it really is something that we either do and do well - or we are almost accepting a bit of defeat in terms of the offering of the city centre.”

Mr. Chesworth, who chaired the Towns Fund Board which secured £20.9m in government regeneration cash for Preston in 2021- including for a Youth Zone - said that the chance to improve the “functionality” of the venue should also be seized.

“You’ve got the theatre and you make money out of refreshments - but it’s got a tiny little bar area and there's hardly anywhere to sit. So you’ve got this captive audience here and yet you can’t…generate the revenue that is there to be generated.”

Meanwhile, Mark Whittle, manager of Preston’s Business Improvement District, said that it was “reassuring” to finally have some clarity about the eventual reopening of the Guild Hall.

“I am sure the news will be warmly received by the city centre business community and residents.

“The closure of the Guild Hall has had a measurable impact on the city centre economy, the effects of which have been felt by businesses from all sectors. Having a professional and experienced operator to take charge of the venue would be a major step forward for Preston.

“We hope that this can be achieved as soon as reasonably possible,” Mr. Whittle added.

‘PRESTON NEEDS TO BE A PLACE OF THINGS TO DO’

Opposition politicians on Preston City Council have given their support to the next stages in the plan to put the Guild Hall back on the map.

Conservative group leader Sue Whittam told the Post that she was “pleased that we have reached the best agreement we can and I’m looking forward to the next chapter in the Guild Hall’s future for the benefit of the residents of Preston”.

Meanwhile Liberal Democrat group leader John Potter said that it was “great news that the Guild Hall issues are resolved and the venue can move forward after a difficult couple of years”.

He added: “City centres need to be places where consumers can do things, not just buy things. Cultural and entertainment venues such as the Guild Hall will be a vital part of any future prosperity in the city.”

POTTED HISTORY OF THE GUILD HALL

1973 - the Guild Hall and Charter Theatre open, having originally been planned to be ready in time for the Preston Guild celebrations the previous year. The venue attracted huge acts like Led Zeppelin, David Bowie, The Jackson 5, and Thin Lizzy in its early years.

1978 - the venue begins to get national recognition after being chosen to host the prestigious, televised UK Snooker Championship, which it retains until 1997.

2013 - Preston City Council begins to consider the future of the Guild Hall, which is costing the authority £1m a year to operate.

2014 - Preston businessman Simon Rigby buys a 999-year lease on the Guild Hall for just £1.

2019 - The Stage publication reports that more than 200 creditors, including West End producers and comedy promoters were owed a total of more than £4.5m by the company behind the Guild Hall.

May 2019 - the Guild Hall temporarily closes amid stalled negotiations over a possible sale.

June 2019 - Simon Rigby suggests that the venue is back in operation, but administrators say that the lease had been forfeited because of what the city council said were “significant breaches” of the lease agreement. The authority retakes control of the venue.

2020 - Simon Rigby tells the Post he is suing Preston City Council for £9m, shortly before his death at the age of 58 in August that year.

January 2022 - the Post reports that Simon Rigby’s estate is no longer pursuing the case against the city council, but several other parties are continuing to do so.

March 2023 - a confidential settlement in the case is announced and embryonic plans are revealed for how the venue can be brought back into use.