Charity owners of Roxy Art House declare bankruptcy

The financial collapse of an Edinburgh charity has forced the organisation to put all of its properties up for sale, including three major arts venues popular with students.

Edinburgh University Settlement, which had been operating for 105 years, has been forced to cease operations after incurring debts of up to £4 million.

The charity's annual spending was routinely up to £300,000 more than its income. The bankruptcy has resulted in 40 job losses.

Scotland's charity regulator is believed to have been conducting an investigation into EUS. It has also emerged that a convicted fraudster had been acting as an advisor to the charity. David Duff, formerly the chairman of Hibernian FC, was convicted of mortgage fraud in 1993 and jailed for two years.

EUS, which is affiliated with but financially independent from the University of Edinburgh, operated social outreach programmes and commercial enterprises from its various properties. The Journal contacted the organisation, but they were unavailable for comment.

Some of the charity's centres have now been closed, including the Roxy Art House multi-arts venue on Roxburgh Place, which recently concluded its critically-acclaimed Hidden Door Festival. Two of EUS’s tenants, the Forest Cafe and the GRV nightclub, may be forced to do the same as their buildings have been put up for sale.

The three venues are some of the best-known in the annual Edinburgh Festival and offer affordable and accessible arts and events spaces year-round.

Rupert Thomson, the Roxy's artistic director, told The Journal that he is keen to continue with the project and is working hard to secure its future. "We had something really special going on with the Roxy: a devoted following, a fantastic team and a programme that was already being recognised nationally as being both high-quality and unique.

"It was a great place to be working. So naturally enough I am inclined to look for ways in which it might be brought back, or better still developed upon as an idea and a business.

“At this early stage I am mostly having conversations, rather than committing to anything concrete. I do think the Roxy building on Roxburgh Place is perfect though: the studio theatre is very special, and the atmosphere in the basement is unlike anywhere else in Edinburgh.”

The Forest Cafe, part of The Forest volunteer arts and events collective, is independent of EUS but the charity acts as their landlord and offered them favourable rent rates.

They are now embarking on a campaign to raise the £500,000 needed to buy their building outright. Neil Beaver, a volunteer and trustee of The Forest Charity told The Journal: “We are hoping to buy the building we are currently in. We are embarking on a massive fundraising drive, exploring all possibilities for getting financial support to help us achieve this goal.

“The Forest is a unique organisation which is considered by many to be a vital part of the Edinburgh arts scene and the local community. We have recently celebrated our 10th birthday and we hope to carry on for another ten years, and more.”

He added: “All events and exhibitions are free of charge. We also offer a range of free educational workshops and subsidised facilities for artists, such as studios, rehearsal rooms and a darkroom.

“Every year we host the Forest Fringe festival which has been highly praised in the media for hosting some of the most innovative work at the Edinburgh Festival in recent years.”

The GRV nightclub is currently under investigation for electricity fraud, but regarding the bankruptcy of EUS its manager told The Journal: "We will still have facilities for students and it's not going to affect them. We're going to run as normal and there's still space for artwork."