Uncertainty for Ealing Project After Company Collapse
Cinema still operating despite owner going into liquidation
The Ealing Project. Picture: Instagram
October 8, 2024
The future of the Ealing Project is uncertain following the company which operates the cinema and community centre going into administration.
The Really Local Group (Broadway) Ltd, the entity that owns the venue, has appointed Begbies Traynor to handle the liquidation with, at this point, no statement from the parent company The Really Local Group Ltd which is understood to have a controlling interest.
Following the announcement of the liquidation a post was made on the Ealing Project’s Instagram account saying, “Hi Everyone, We want to assure you that the Ealing Project is open and trading as usual. We're committed to continuing to provide the best cinema experience. We
appreciate your support and look forward to welcoming you!”
It appears to be no longer there but the venue, which first opened in June 2022, is still operating and promoting forthcoming events including a Hong Kong film festival.
The liquidator has published a statement of affairs which provides details of the company’s assets and liabilities.
This shows that over a million pounds were spent on improvements to the premises and fitting it out, but the current value of this work is uncertain. The furniture is valued at £40,000 which combined with goodwill and other smaller items gives an estimated value of around £60,000 which is dwarfed by the £233,352 owed to HM Customs and Revenue. Adding in other creditors, including suppliers and the landlord, the total deficit is nearly two million but half of this is from an intercompany loan believed to be from the Really Local Group Limited.
Much of the money owed by trade creditors is to film distribution companies including Warner Brothers, Sony Pictures with Walt Disney being owned the most at nearly £40,000. Ealing Council is owed just over £2,000.
The liquidator states that the assets of the company would have a substantially greater value should someone take over the operation as a going concern.
The company hasn’t submitted accounts since December 2022 and, even then no profit and loss statement was provided, but at that point liabilities already substantially outweighed its assets.
The view of a local accountant who was a regular visitor to the Ealing Project is that the centre may remain open for the time being as the liquidator looks to conduct negotiations with potential buyers. This is similar situation to that which occurred at the Riverside Studios in Hammersmith which went into administration in 2023 but never ceased operations. The hope is that if the intercompany loans can be written off and other creditors such as the landlord are prepared to take a cut in the amount owed then the cinema operations will remain viable.
The Really Local Group Ltd (RLG) is still continuing to trade. The company, which was set up by Preston Benson, looks to develop community entertainment spaces in former retail sites. The Ealing Project used to be the Karma Night Club. Its first project was Catford Mews in 2019 followed by one at Reading’s Biscuit Factory. Since then it has initiated five more schemes including the Ealing Project and one in Sutton which also saw a night club converted. Most of its projects involve a cinema and café bar which also hosts live music. None of the other projects appears to have been put into liquidation at this stage.
Preston Benson moved to London from America in 2005 to work for Deloitte. He remortgaged his house to set up RLG and got funding from high-net-worth individuals to expand the company which aimed to insure that developments in town centres were more community led.
RLG has not responded to our request for a comment.
See what's on and book tickets at The Ealing Project.
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