Newcastle City Council is owed more than £6 million following the collapse of the charity that operated the City Baths, according to new documents. The insolvency specialists handling the affairs of Fusion Lifestyle, which regenerated the Grade II-listed historic pool and Turkish Baths, have issued an update showing the council lodged claims for £6.06 million.
It is unlikely the authority will recover any of the money, which includes the majority of a £5.5 million loan provided to Fusion to support the refurbishment of the baths between 2016 and 2024. The council is joined by numerous trade creditors, including North East-based plumbing, fire safety, and energy brokers, who are owed thousands of pounds.
In total, claims exceeding £33 million have been submitted to the administrators of Fusion. Among the unsecured creditors are customers, HMRC, and employees, including unpaid pension contributions.
Council's Statement
A spokesperson for Newcastle City Council said: “As part of the administration process we have lodged with the administrators a claim for all the money owed to us by Fusion Lifestyle. As well as the outstanding amount owed on the loan that was provided to support the refurbishment of the City Baths, that also includes debts for services we provided, including rent, utilities, and trade waste.
“Unfortunately, as an unsecured creditor it is very unlikely that we will recover what is owed in full, however the council owns what is now a fully restored building and we look forward to it continuing to offer high quality leisure facilities under a new operator.”
Background of Fusion Lifestyle
Fusion Lifestyle collapsed in April after what administrators at S&W Partners LLP described as a “prolonged period of financial difficulty”. The City Baths have remained open since the collapse. Fusion had been operating for 26 years, established after a London Borough Council decided to outsource the management of leisure facilities. In recent years, it operated more than 60 pools, leisure centres, and sports complexes across the country.
In 2016, Newcastle City Council granted Fusion the lease for the historic buildings when it realised it could not fund their refurbishment. This action is said to have saved them from permanent closure.
Restoration and Awards
Following an £8 million restoration project, which faced delays due to Covid and other issues, the city centre venue won an award at the UK Pool & Spa Awards in late 2024. The site includes a swimming pool, a fully equipped gym offering exercise classes, and the restored Turkish Baths.
