A much-hyped new arts quarter in East London which was supposed to be a top Olympics party venue has gone into administration, little over a month after it opened with the high profile backing of Boris Johnson and a £3 million loan from Newham Council.
The collapse of the London Pleasure Gardens, close to the ExCel Centre, comes amid allegations of chronic mismanagement and safety failings.
Hundreds of staff are owed wages, architects have not been paid and earlier this week the creative director resigned.
A spokesperson for the London Borough of Newham said: “The decision by London Pleasure Gardens Limited to enter into voluntary administration is regrettable but understandable.
“It is disappointing that the anticipated visitor numbers and revenue from recent planned events have not materialised. London Pleasure Gardens won the right to operate the site for two years from the LDA and Newham Council as the winner of a Meanwhile London Competition.
“ We continue to believe that the site has a viable long term future as a visitor attraction and destination. We will now work with the administrator once appointed to help secure our investment and to discuss the future scope and nature of our involvement.”
The Gardens were host to last month's Bloc festival, that was dubbed the worst festival of all time after it was forced to close just hours after it started.
The company behind the festival, Baselogic Productions, have also gone into administration.
