Collapsed arts centre warned of 'significant financial risk' weeks after £3.4m government funding

The collapsed Centre for Contemporary Arts (CCA) had warned of “significant financial risk and volatility” just weeks after receiving a £3.4 million grant from Creative Scotland last year.

Accounts published to Companies House in April last year for the year to March 2024 show that the board of the CCA had increased financial scrutiny of the organisation as it reported “a controlled loss” and admitted it had had to dip into its reserves in order to survive.

The venue and office space, on Glasgow’s Sauchiehall Street, fell into the hands of liquidators on Friday, with the building immediately shut down and all staff laid off. It had temporarily closed its doors in September as it worked to secure its long-term future - however, had planned to reopen in March.

Creative Scotland said it was aware of the financial difficulties faced by CCA and had provided funds for a business consultant to work with the organisation on reviewing the operating model as part of the funding allocation.

The accounts show the organisation’s board had begun holding more regular finance committee meetings in a bid to “scrutinise financial accounts” and “ensure more granular management” of the company’s financial position.

The documents reveal that the CCA had asked the government-funded arts body for £4.5m in multi-year funding, to be allocated over a three year period, claiming its funding had been ”at a standstill” in recent years.

However, it was granted £3.4m in a funding round in January 2025, which saw 250 Scottish arts organisations allocated multi-year grants by Creative Scotland, an award the CCA’s directors noted as “positive”.

At the time of the Creative Scotland funding allocation, a further 13 organisations were deemed not eligible for full multi-year funding. Instead, they received £3.2m from a development fund to enable them to improve on certain criteria before moving into the main funding stream.

CCA was not among them, having been deemed worthy of full scale funding.

The Centre for Contemporary Arts in Glasgow. | Contributed

The CCA said in the accounts that at the time of the Creative Scotland funding allocation, it had been praised for its “well-articulated vision for the future, including plans for increased investment in staff”.

The director’s report published with the accounts last year said: “During the financial year, CCA faced significant financial risk and volatility. Due to increased and extraordinary costs, reserves were utilised in year to ensure the viability of the organisation. This resulted in higher risks to the organisation as reserves and cash reduced.

“To mitigate these risks and manage CCAs financial position, Finance Committee meetings were held on a regular basis to scrutinise financial accounts, review audit work and strengthen financial controls. Towards the end of the year, finance meetings were held on a more regular basis to ensure more granular management of the financial position and ensure the viability of the organisation of a going concern.

“The CCA remains a going concern. As of 30 January 2025, it was confirmed that CCA had been successful in its application for multi-year funding through Creative Scotland and had also received positive news that the UK Shared Prosperity Fund, administered through Glasgow City Council would also be extended for an additional year (25-26).”

A statement issued by law firm Lindsays on Friday on behalf of the board, said: “The Centre for Contemporary Arts (CCA) announces that it will cease operations on 30 January 2026 and enter liquidation. As such the CCA building will be closed from 30/01/2026. Over the past eighteen months, CCA has undertaken a structured recovery process to address significant financial challenges. Despite the efforts of staff, partners, and the broader community, the organisation was unable to achieve a sustainable financial position.

“The CCA extends its appreciation to its team, audiences, artists, and collaborators for their longstanding commitment, creativity, and support.”

Creative Scotland said CCA’s application for multi-year funding submitted in April 2024 had included a “financial pro-forma”. It added all elements of the application were assessed in line with the published guidance, and as meeting the criteria, resulting in the decision to award the funding.

A spokesperson said: “Creative Scotland was aware of the fragilities the organisation was managing and remained in close contact with the CCA Board. Which is why Creative Scotland provided funds for a business consultant to work with the organisation on reviewing the operating model and proposing solutions for future-proofing areas which had become fragile.

“Creative Scotland supported the organisation’s leadership and board to create a plan with clear milestones including regular reporting on its progress in delivering its plan.”