Jobs at Dundee social enterprise The Circle are at risk and it is quitting one of its city premises amid cost pressures.
It is just over a year since the group moved into the former Michelin factory’s recreational club, known as the Mac Club.
However, it is giving up the lease due to the costs involved of running the 7,000 sq ft building.
The Circle acts as a landlord to several charities who were based in the building.
These include Togs for Tots, Partners in Advocacy and, until recently, Dundee Bairns, which has moved to The Circle’s other premises at Dudhope Castle.
Founder and chief executive Kirsty Thomson said it was no longer economically viable for The Circle to run the building.
Ms Thomson said The Circle would work with its affected tenants to offer “alternative arrangements”.
A spokesperson for Partners in Advocacy declined to comment.
Reasons for leaving former Michelin building
Ms Thomson said the building needs more repair work carried out than was first apparent.
The cost of heating the premises has soared since The Circle moved in last March.
That has led to the decision to leave.
“The twin pressures of rising heating costs and the challenge of repurposing, repairing and renovating a listed building mean it is not economically viable to continue with this property.
“Terminating the MSIP lease will allow us to focus on fully developing operations for our tenants at Dundee’s Dudhope Castle, and Easterhouse, Glasgow.”
The Circle opened its premises in Glasgow in 2021 and moved to Dudhope Castle last year.
Energy firms criticised
Ms Thomson criticised energy companies for rising bills. She said more should be done to help organisations such as the one she founded in 2016.
“I am furious that the only sector that seems to be winning right now are the energy providers, at the detriment of vital third sector organisations and businesses across the country.
“It’s horrendous that we’re having to face this.
“My big frustration is that most businesses and third sector organisations who are running buildings are paying staff and the lion’s share of the money is going to already profit-making energy companies.
“It’s so frustrating that’s the position businesses are being put in.
“The ripple effect this can have across communities is awful, ultimately because of the rising cost of energy.
“The fact these organisations are out there profiting, is a complete misalignment of the way finances should be spent.”
One of the affected tenants is Togs for Tots, which provides clothing and equipment for struggling families’ children.
The other, Partners in Advocacy, offers independent advocacy to children and young people aged 21 and under.
The Circle: Dundee jobs under threat
Meanwhile, the social enterprise is also beginning a consultation period with its staff about possible redundancies.
Ms Thomson was unable to say how many of The Circle’s 17 staff were at risk of losing their jobs.
She added: “The changes being implemented form part of an ongoing process to ensure we remain cost effective and efficient.”
However, Ms Thomson said the organisation remains committed to its mission: to provide fair rent and flexible workspaces for charities, social businesses and community groups.
She said the Dudhope Castle space is now full and there are limited spaces at its premises in Glasgow.
“We recognise that this is a challenging time for everyone in our wonderful community,” she added.
“However, our dedication to The Circle’s mission has not changed.
“As we work through, and process, these difficult organisational changes, we are certain they will help us to grow stronger in the future.”
MSIP committed to supporting The Circle
Greig Coull, chief executive of the Michelin Scotland Innovation Parc, expressed his disappointment at the move.
He said: “We are saddened to hear of the news from The Circle. However, we understand the reasons behind their decision.
“Many businesses have been hit hard by the rising costs of operation. There continues to be a lot of uncertainty with running a business right now.
“We remain committed to working with The Circle, and to supporting them in any way that we can.”
Conversation