Azur Company Faces Winding-Up Order (Again)
by HUGH SULLIVAN
The future of the Azur Marina Pavilion on St Leonards seafront will be at stake next Wednesday 1 March in the High Court in London. The company which owns and manages it, Azur Events Limited, faces a winding-up order on a petition brought by the freehold owner Sea Change Sussex (the trading name of East Sussex Energy Infrastructure and Development Limited) for rent arrears under its lease.
According to a spokesperson for Sea Change, Azur Events has been given “additional time” and rent reductions both pre- and post-Covid, but “has failed to keep up with payments due under the lease, and the amount we’re owed has continued to grow throughout much of the lease term”.
The issue of the petition is described on behalf of Sea Change as “a last resort action on our part – not a decision we’ve taken lightly. We’ll see what the court decides at the hearing on 1 March and hope the matter gets resolved swiftly so the property can continue to be of benefit to the local community for years to come.”
No doubt, Sea Change’s reference to the local community stems from its role – and that of its predecessor Sea Space – in managing public sector ‘regeneration’ funds in East Sussex over the past two decades. More particularly, it must be mindful of its record of financial losses in relation to the Azur premises for almost the whole of that period. For a full history, see page 3: Azur Time Goes By.
Future prospects
Sea Change has not disclosed at this stage what debt is due. It may be that, notwithstanding the two previous insolvencies of the successive lessee companies managed by sole director David Thorpe-Tracey (see his statement below), Azur Events is able to persuade the court that it has a reasonable prospect of paying off the debt or otherwise persuading its creditors to allow it to continue trading. It seems to be continuing to take bookings (and perhaps deposits) for future events such as weddings.
However, there are other indications at the premises that the company’s finances are geared to the shorter term and that repair and decoration provisions in the lease are being disregarded. A sign posted on the window of the premises last weekend (next to one advertising Christmas parties which has yet to be removed) states that customers’ payments are being accepted on a cash-only basis. On casual observation the windows are filthy with loose metal panels. The roof also appears in poor condition with a patchwork of repairs. It is difficult to see how the business can be revived without a large injection of fresh capital.
So why hasn’t Sea Change taken steps to forfeit the lease and begin again? That’s not a conversation which anyone representing that company seems willing to enter into.
Stop the Press!
On Monday afternoon, as our news pages were going to press, David Thorpe-Tracey provided a statement on behalf of Azur Events. In it he alleges that Sea Change and Hastings Borough Council have together prevaricated on an intended purchase by his company of the head lease, and that Sea Change has increased the annual rent from £60,000 to £90,000 despite the Covid-19 lockdown, while being itself responsible for major building defects at the premises including a “substandard” roof, an “inadequate Victorian drainage system”, and incorrect installation of heating and air conditioning units. The statement also challenges the amount of the debt claimed in the winding-up process.
“For the past 15 years,” Mr Thorpe-Tracey says, “Azur has been a hub for the community, supporting local businesses, community groups and charities, providing award-winning customer service to thousands of local residents and visitors from outside the area who have chosen to hold some of the most important days of their lives at Azur such as weddings, anniversary celebrations, birthdays and, sadly, end of life services”.
He asks: “What is going to happen to the 45-plus functions that are already booked to take place in 2023/24, and what will happen to safeguarding the deposits from those 45 events, as well as the safeguarding of the St. Leonards Studio and Babilicious, regular and repeat businesses that are only able to use Azur due to its location and its square footage?”
Who’s responsible?
And what about Hastings Borough Council (HBC)? As the freehold owner of the site, it is Sea Change’s ultimate landlord at the site with powers to oversee Sea Change’s tenure by enforcing obligations under its superior lease.
It is also registered on the Companies House file as being a “person with significant control” of Sea Change, which should mean that it holds more than 25% of the voting rights in the company – Rother District Council and East Sussex County Council likewise. However, the Articles of Association adopted at the outset of the company in 2011 gave the three councils only a combined vote of 19.9%. The director appointed by Rother, Cllr Kevin Dixon, resigned from the board in February 2022, citing “lack of progress on key projects” and “constant disagreements with the three local authorities”, and informing his council in an open meeting that “the reputational damage to myself and to the Council of being associated with Sea Change is just too great”. HBC’s leader, Cllr Paul Barnett, followed suit in March 2022, and has taken no steps to appoint any successor on the board.
In short, HBC seems intent on avoiding any responsibility for the conduct of Sea Change, though whether this avoidance is in the best interest of its citizens may come under fresh scrutiny in present circumstances.
There may (or may not) be fresh disclosures at, or as a result of, the hearing on 1 March.
Read about the Azur’s chequered past here.
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