A decision to evict award-winning Scottish social enterprise, Locavore, from its Bellahouston site has been driven by Glasgow City Council concerns over financial governance and debts owed by the original company.
The social enterprise released a statement criticising the city council after receiving a notice to evict from their premises at Bellahouston Nursery. A petition calling on the council to reverse the decision and stating that the move threatens Locavore's existence and 80 jobs at two Glasgow shops, currently has just under 5,000 signatures.
The eviction notice follows a period of uncertainty for the enterprise, with Locavore CIC going into administration in January this year and a successor company called Chard Holding Group CIC set up in its place. The company, which is still run by original owner, Reuben Chesters, had hoped to continue at the Bellahouston location with a lease in place until 2062 for a sustainable food hub.
Going into administration cancelled that lease but Locavore say that had been given assurances they would be allowed to stay on the site.
Glasgow City Council refute that statement, telling the Herald that no assurances were given and that ‘it is unclear why Chard CIC think they should be able to take on Locavore’s lease’.
Locavore say their administration in January was unavoidable but it has left a number of creditors, including more than £100,000 owed in non-domestic rates to the city council.
That, coupled with the fact there have been no assurances from Chard CIC that they would cover the debts owed, has left the council feeling like they had no choice but to evict - despite the food hub aligning with the city's sustainability objectives.
Following due diligence, during which officials state that Chard CIC was 'unable to demonstrate appropriate financial governance', the decision evict was made to best protect the city and taxpayer from further fallout
A Glasgow City Council spokesperson said: “Locavore ceased to exist owing hundreds of thousands of pounds to its creditors, including the Council.
“As should be expected, Locavore’s lease also ended when that company was entered administration.
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“Chard CIC have not taken on liability for any of the previous debts of Locavore and Chard CIC have been unable to demonstrate appropriate financial governance following the collapse of the previous company, Locavore.
“The site at Bellahouston has not been developed as we had hoped and it is unclear why Chard CIC think they should be able to take on Locavore’s lease.
“Our Property Asset Management team, which manages rental arrangements in relation to council property, gave no assurance that the lease for Bellahouston Nursery would be transferred from Locavore to the new company, Chard CIC.
“We are committed to food growing and will work proactively with other organisations to ensure that the site at Bellahouston continues to contribute to the city’s food growing agenda.”
It’s also understood the council had told Locavore’s owner, Reuben Chesters, not to plant any more vegetables ahead of the eviction notice.
However the organisation has stated that tonnes of cucumbers, tomatoes, beans and kale were due to be harvested in the coming months. This will now be unable to happen with Locavore being told to vacate the site by the end of July.
The company say 80 jobs could be lost if the council don’t change their decision with staff based at the site and two shops in Glasgow at risk.
Mr Chesters squarely blamed the council stating: “We are deeply disappointed and frustrated by the lack of transparency regarding the decision making process, and the unwillingness of the council to explore solutions with us in spite of awareness of the existential threat this position poses to our social enterprise. The current position has been reached through a catalogue of delays and errors by various council departments since October 2023.
“We’re exactly the type of organisation that is required to deliver local and national visions for a sustainable food future and we ought to be supported and celebrated by Glasgow City Council.
“It’s incredibly disappointing that we are not being treated as a valuable partner that can help realise their policies, plans and strategies.”
Chard Holding had been awarded a grant of almost £50,000 earlier this year and had plans to increase production but that will now be unable to happen due to the council’s eviction notice.
It is understood the local authority also had concerns about how the site had been developed since they first took it and discussions with the company had been ongoing since May.
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