At a meeting of the Trustees of Pride (South East) on January 31, 2012, by a vote of 4-2 it was agreed that Pride would issue the following statement on Friday, February 3.

"It is with great regret and sadness that the directors and trustees of Pride (South East), which has been running Pride in Brighton and Hove, have to announce that they are to cease trading. The decision was taken following advice from accountants, solicitors and insolvency practioners.

"The Park event has made a loss over a number of years. In 2011 with the park fenced and ticketed, much greater costs were involved in putting on the event. Not knowing how many paying members of the public would attend, it was deemed necessary to provide for a "Full House" of 50,000.

"In fact around 30,000 people paid for entry, although feedback showed they were very pleased with the result, it meant there were more facilities and infrastructure provided than was required.

"A subsequent VAT ruling dramatically altered the cash flow of the charity. In early December HMRC rejected a reclaim of around £78,000 on the grounds that as a fundraising event the park ticket sales are exempt from VAT. This together with other losses made by the charity over the past four years has been too big a burden to carry.

"Negotiations have been ongoing with the largest creditor, Fisher Productions, to try and organise a Company Voluntary Arrangement, but after due consideration, such a measure would have required guarantees as to sponsorship and attendance which were just not practicable. The trustees thank Fisher, Select Security and other parties for their patience and constructive help in trying to put an agreement together.

"The trustees apologise to those who have been let down both commercially and as members of the LGBT community.

"They also thank all those who have volunteered, supported and contributed to Pride in Brighton & Hove over many years, not least Brighton & Hove City Council.

"The express hope is that another group will take up the mantle of organising Pride, hopefully for 2012, but if not certainly for 2013.

"In the interim for a short while at least, limited communications will be maintained."


The voting at the meeting went as follows:

Yes: To issue the statement and cease trading on February 3.
Russell Allen, Chair of Pride
Nick Beck, Vice Chair of Pride
Ryan Atkins
David Bishop

No: To carry on trading
Mike Chalmers
David Bettelley exercising a proxy vote for Baz Stannard

Following the meeting two of the unpaid officers of Pride resigned. Ryan Atkins who had successfully organised the street party in 2011 and Nick Beck who was the vice chair and had instigated a complete investigation of Pride's finances. Both were strong advocates that Pride South East was no longer solvent and therefore it would be illegal to carry on trading unless there were guarantees to treat all the creditors fairly and also to guarantee the survival of Pride, the event for at least another year in such a way that it could not make further losses.

On Friday evening at 5pm Russell Allen the chair of Pride issued the following statement.
"In early December HMRC rejected a VAT reclaim from Pride (South East) and this dramatically altered the charity’s cash flow.

"Since then negotiations have been ongoing with Pride’s two largest suppliers to seek a solution which would enable smaller creditors to be paid and planning for the 2012 event to continue.

"Negotiations are continuing and the Trustees will share the outcome at the earliest opportunity."

In the public interest I have decided to print both statements as it is not clear if any meetings post January 31 after the two trustees resigned were quorate with people eligible to vote.

Pride South East creditors include:
Fisher Productions Ltd              £129,106.08
Select Security & Stewarding    £  19,285.47
St John Ambulance                  £  11,732.80
Berry Recruitment                   £    7,089.61
Same Sky Charity                    £    6,000.00
C3 Productions Ltd                  £    2,371.50
PRS Performing Rights Society £    2,027.72
Lion Security                          £    1,629.00
Baron Management Ltd           £    1,232.84
TR Consultants                       £    1,092.90
Brighton & Hove City Council   £       945.74
Firststar Limited                     £       600.00
Viking Direct                          £      474.00
Independent Print Ltd             £      400.00
Brighton & Hove City Cabs      £      192.00
JCF Contractors                      £      150.00
Robertson Alarms Round Ltd    £        71.29
Sussex Alarms Limited            £        66.00
David de Ath                          £        27.00
Brighton Paper Round             £        22.68
Dave Bettelley                        £        10.00
                                             __________
                                             £184,527.06

Pride (South East's) last set of accounts lodged with Companies House are dated October 31, 2010 and were filed 140 days late on the charity commission website.

On October 31, 2010, the last day of the accounting year, for Pride (South East) their accounts show a credit note entry from a major creditor for £68,714.00.

On November 1, 2010, the first day of the new tax year, Pride (South East) accounts register a new invoice entry for the same creditor for £68,714.00.

This entry hid a loss in Pride (South East's), 2010 accounts, allowing the charity to trade into 2011, running up debts of £184.000 to a variety of creditors.

On Friday, February 3, Gscene asked the Charity Commission to confirm who they considered to be the Trustees of Pride (South East).

A Charity commission press officer confirmed to Gscene, from accounts lodged on January 18, 2012, the Trustees of Pride South East to be those listed on the Charity Commission website: Russell Allen, Nick Beck, Madeline Lawler and Del Smart.

Del Smart has confirmed to Gscene he resigned from Pride (South East) at the last AGM. Nick Beck has confirmed to Gscene he resigned from Pride (South East) on January 31, 2012. It has not been possible to contact Madeline Lawlor to confirm her current status, if any, as an officer of Pride (South East).

It is not clear what the voting status is of the other people who voted at the meeting on January 31 or any other meetings afterwards.

If you are owed money by Pride (South East) or Pride in Brighton & Hove please telephone 01273 722 457

Following the publication of this news story Pride (South East) issued the following statement on February 7.
"Pride (South East) issued a statement on Friday 3rd February outlining the rejection of a VAT refund and associated financial problems. The Trustees role has been to work with suppliers and other partners to seek
acceptable solutions; this work has been on-going in recent weeks and
still continues.

The Trustees recognise the anxiety the local community has regarding the
future status of Pride and they have been working hard to reach a
clarified position which could then be explained.

This work has been hindered by the unhelpful release of documents which
misrepresent Pride’s position by individuals no longer involved.

In particular a draft statement has been published online, although this was never released by Pride and confuses the present situation.

While the charity believes in transparency with all stakeholders, including
the community, it is necessary to maintain a level of confidentiality when
negotiating with suppliers and other partners.

Work continues this week and details will be published once meetings
have been completed."