Stroud’s 186-year-old entertainment venue the Subscription Rooms will temporarily shut down with jobs hanging in the balance as savings ‘need to be found’.

The trust which runs music gigs and comedy shows in the venue offered its staff voluntary redundancy today and the building’s doors will be briefly closed within the next few months, less than a year after it took ownership.

According to a confidential Stroud Town Council document, leaked to the LDRS last week, savings ‘need to be found’ as what’s left of the £290,000 grant funding handed by itself and Stroud District Council to the Stroud Subscription Rooms Trust (SSRT) last year is ‘not sufficient to continue to trade’.

The Grade II-listed building was sold to Stroud Town Council for £1 by the district council last year and was leased to SSRT specifically set up to run the venue.

A business plan was created for the trust to become financially self-supporting within five years based on the grant funding, however improvements to the building, rising wage costs and low returns from bookings had led to delays in implementing changes.

The confidential report, presented to town councillors in a private meeting on March 9, said: “One important learning point is that there should have been more work in shifting the culture of organisation away from the previous council environment, which was very much focused on minimise expenditure, rather than community engagement and involvement.”

A joint statement from the town council and SSRT said it is working with promoters and performers to either postpone or relocate any events which are booked during the closure period.

The statement also said the trust is ‘dedicated to ensuring that this historic venue thrives’, and is asking for the public’s continued support.

A volunteer co-ordinator to recruit people to work for free for the trust has been appointed and will start soon, the statement said, and has now secured several grant offers to progress improvements to the building.

The Subscription Rooms has hosted many big bands, including The Beatles in 1962.

It is not clear exactly when the venue will temporarily shut down.

The Stroud Subscription Rooms Trust took over the business of the Sub Rooms and a lease from Stroud Town Council in March 2019.

It received grant funding for £240,000 from Stroud District Council, which also paid for roof repairs in a separate one-off payment, and £50,000 from the town council.

According to the leaked town council document, on February 17 the trust’s bank balance was £169,000, and an accountant advised the trust increased income and reduced expenditure as total monthly costs were £40,000.

The report said it had been a ‘big challenge’ securing funding for building works, and broadband has been a ‘big issue’ since card machines were introduced in the cafe and bar.

It said the connection ‘frequently failed’ during large events and although the issue had been resolved with the installation of fibre broadband, it came with an additional rental cost of £440 a month.

The document also said SSRT have been ‘far too slow’ to introduce volunteering, and that wage bills have risen partly because there are more events happening.

The confidential document listed an action plan with measures the town council now says are ‘out-of-date’, and has provided an update as to what will happen next.

Those changes are:

  • Continue trading with a brief shutdown
  • Recruitment of a volunteer co-ordinator
  • Renegotiate artists’ fees for fees and/or postpone or relocate
  • Seek opportunities for more pre-show dinners with guest caterers, and reduce margins for these
  • Promote room hire
  • Trustees to provide more hands-on support to staff
  • Introduce premium pricing for balcony seats for suitable events
  • Meet the contracted staff and offer voluntary redundancy (happened today)
  • Meet with all other staff to explain the situation and seek support for cost savings/volunteering (happened today)
  • Send out message to previous large donors
  • Review results of voluntary redundancy offer
  • Recruit and train volunteers for the cafe

The joint statement from Stroud Town Council and the Stroud Subscription Rooms Trust said: “The Stroud Subscription Rooms Trust took over the operation of the Sub Rooms on 28th March 2019.

“The previous owners Stroud District Council had previously subsidising the running costs by at least £300,000 a year, so the Trust were given start up grants of £230,000 by the District Council and £50,000 by the Town Council to help them through their first few years. The District Council also repaired the roof.

“The Town Council also invested in setting up the new operation, for example by providing equipment and IT infrastructure and Council staff have been working alongside the Trust to support their development.

“With help from public donations the Town Council has developed detailed plans for the building to help it operate more efficiently in the future and has successfully secured several offers of grants to progress improvements to the building.

“As we approach the anniversary of the venue being transferred into community management the Trust have been reviewing performance to date and developing plans for the future.

“The Trust have made a very good start in their first year running The Subs, but like all arts venues money is always tight, so detailed work has been going on to decide on the best way forward to  ensure the future of the building.

“A number of options have been considered, including potentially closing, but the Trustees have decided that the best way forward is to temporarily shut the doors within the next few months (subject to coronavirus developments).

“The closure will enable the Trust to complete some work in the building, including long awaited improvements to the sound and acoustics in the ballroom, and to overhaul the upstairs bar – so that people can enjoy a drink while appreciating the improved sound.

“The staff team have been absolutely amazing over the last year – they have stood with the Trust through significant changes to the way the building operates and we couldn’t have come this far without them.

“Running costs have already been cut by a quarter, but more savings need to be found, so the Trust are reviewing the staff structure to make sure they can afford to pay the people they need to survive.

“The staff team have been briefed this morning about some changes, which include the potential for some redundancies.

“Councillors and trustees were distressed to learn that confidential information relating to these matters were leaked to the press last week. We would ask whoever did this to reflect on the impact that has had on the staff both at the Subs and the Town Council, our customers and promoters.

“An overhaul of the programming is also continuing – bringing a more diverse selection of performers from a broader range of genres – which in turn has seen a 20 per cent increase in ticket sales, and eight sold-out events in the last six months alone!

“The Subscription Rooms Trust are dedicated to ensuring that this historic venue thrives, and we are counting on you the public’s continued support.”