Oban’s community-owned Rockfield Centre has been rescued by a £150,000 "lifesaver loan" - but still needs volunteers to save it from closure.
Dr Richard Wilson, acting chairman of Oban Communities Trust, admitted the hub was on the brink of going under before the cash was found to save it.
He said: "It was touch and go whether we were going to survive, but we are still here, and that is the best news I can give everyone.
"We cannot afford to take on staff because we are still fragile. We are so dependent on such a small budget without reserves and a small number of individuals with skills. That is a huge burden on them. That is not sustainable.
"We have got to get new blood on the board. If we do not get trustees, that endangers the project. There is a duty for Oban to put hands up and say, ’I can do this’."
OCT was established in 2014 after a campaign to buy and save the former Rockfield Primary School building and turn it into a community hub. It sourced £2.9 million of funding to complete capital works. Over 700 members raised almost £350,000 in bonds, shares and donations. Doors opened in summer 2021.
Last December, the Rockfield Centre called for volunteers and "debt forgiveness" with creditors, amid a serious and severe financial challenge which threatened to shut its doors.
Rockfield traded insolvently in winter 2023, but after a string of hard decisions, including redundancies, a reduction in opening hours, price hikes and new tenancy agreements, a trading surplus was achieved in January.
Trustees are confident this can be maintained - but now the urgent need for trustees has again but the centre’s future in doubt.
The £150,000 loan, which was secured from Social Investment Scotland, has allowed Rockfield to consolidate its debt and settle bills with traders.
The foremost challenge is making £250,000 per year to operate the facility, which includes the cost of loan repayments and paying two "necessary" operation and financial managers, with recruitment under way.
The car park produces £90,000 a year in income, which OCT plans to maximise. They have tightened cost control in the café, which is now generating a surplus during low season. The centre has three new tenants, its maximum capacity. Three large rooms, including the café, can also be hired for events.
Another challenge is managing seasonal fluctuations in cashflow to provide an annual revenue to meet costs in lean months.
"We need 100 per cent grants for community projects, because we cannot subsidise them," said Dr Wilson. "It is very difficult in this current environment to get grant funding. We constantly need to be applying for grants so we can deliver these projects."
Grant funding of £160,000 has been secured for community projects in 2024.
In a Q&A session, it was asked why OCT’s crowdfunder for £50,000 had ceased. Dr Wilson explained it had raised a small amount of money, but the board was not comfortable asking people for more money when it is tight, after they had already given £350,000 and there was a loan coming in.
He said: "We gave the money back. You have given an awful lot. It was up to us, and not hand out the begging bowl."
Most critical to Rockfield’s survival now is the need for more volunteers.
"Sincere thanks to every person who has supported us," concluded Dr Wilson. "This continued patience and help is gratefully appreciated. We welcome and encourage any new board members, volunteers and members. Create a beautiful phoenix from what was nearly ashes."
Yes! I would like to be sent emails from West Coast Today
I understand that my personal information will not be shared with any third parties, and will only be used to provide me with useful targeted articles as indicated.
I'm also aware that I can un-subscribe at any point either from each email notification or on My Account screen.