Telford College is to close the leisure, hospitality and fitness facilities which were previously attached to the Whitehouse Hotel in Wellington.
The leisure facilities, along with the adjoining Whitehouse Hotel, were bought by New College Telford in 2014 with the intention of being used as a base to launch hospitality and catering courses.
But this never materialised, and they became surplus to requirements following the merger with Telford College of Arts and Technology.
Telford College says they felt there was no educational benefit to retaining them, and has been seeking to sell the Whitehouse leisure facilities ever since.
While it succeeded in selling the 90-bed hotel last month, it has failed to find a buyer to continue running the businesses in the remaining areas. Potential buyers say it is not a viable investment in its current style of operation, and are concerned with the loss-making position.
However, two expressions of interest have been received for vacant possession of the building, so after careful consideration, the decision has been taken to pursue these further.
Graham Guest, Telford College’s principal and chief executive, said: “Our focus is education and training, and since I became principal in May 2017 we have tried to find a solution. Unfortunately, we have been unable to identify any potential buyers.
“The cost of operating the facilities significantly outweighs their income, and we reached the point where keeping them open was simply no longer financially viable.
“We have therefore reached the difficult decision to close the facilities, so that we can pursue the expressions of interest received for vacant possession of the building.
“This decision has not been taken lightly, and has only been made as an absolute last resort.”
There are 15 permanent and seven casual staff employed across the facilities involved. Staff were informed of the closure this afternoon, and a consultation period is now under way.
The gym and brasserie are to close with immediate effect, while conference and meeting facilities will remain open until February 9.
The two private businesses based at the site are being allowed to continue using the premises for a temporary period, and the college has offered them help in trying to relocate.
Dialogue has also begun with individuals and organisations with forward bookings. It is hoped that a number of these can be relocated to the college’s nearby Haybridge campus, where practical.
Mr Guest said the college had agreed to grant AFC Telford United temporary access to essential facilities within the main stand such as dressing rooms, to ensure that football matches could go ahead as planned.
“As you can imagine, this has been a painful and difficult decision to make,” he said.
“But on top of the day-to-day running costs, we were facing significant refurbishment costs in the spa area alone, including £10,000 on the sauna, £36,000 to bring the pool up to standard, and more than £1,500 on new pool lights.”
Knight Frank is handling the sale of the site. More details are available from www.knightfrank.com.
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