New loan for struggling Magna Centre

The amount has not been disclosed for commercial reasons but was agreed by members of Rotherham Borough Council’s Cabinet meeting in a private session

Last year, £150,000 was borrowed from the authority and repaid.Magna chief executive, Matthew Beck, this week made it clear that the future of the centre is secure, but added: “Like many places we have been hit by the economic downturn, which has led to a fall in visitor numbers and corporate bookings.

“We have asked in principle for a loan facility from the council, which would be paid back over one year, but we are hopeful it could be paid back over a shorter period.

“We are also looking at alternative ways of raising money to avoid borrowing the full amount.

“Magna has had loans from the council before and these have always been paid back on time and in full, with interest. In fact, the amount we are asking to borrow now is less than we have borrowed before, meaning that the finances are becoming healthier even in these testing times.”

Magna doesn’t receive public funding and has not received public money since opening in 2001.

A spokeswoman for Rotherham Borough Council said that the loan to the Magna Trust had been agreed by Cabinet members but would not be made at the expense of council services. 

She added: “This is to provide short-term support to cover cash flow issues relating to the conference and events space at Magna.

“This support for Magna is not being made at the expense of council services and it will be provided at a commercial rate of interest.

“The loan is being made to help one of Rotherham’s key assets—an award-winning venture, which is both a visitor attraction and an important conference destination.”