Art Deco Trust puts its restructure plans on hold for three weeks

The Art Deco Festival is not under threat, the trust says. Photo / File

A decision on whether to shutter the Art Deco Trust's Napier retail store and lay off a number of staff has been put on hold for three weeks while it tries to find financial support.

At the end of May the Art Deco Trust announced a proposed restructure designed to scale back the organisation's operations in the wake of Covid-19 impacts on regional tourism.

The trust runs the annual Art Deco Festival, which draws about 40,000 people to the city every February, as well as other art deco events, guided walks and tours, and the shop at the Art Deco Centre in the city centre.

The restructure could impact seven of 11 paid staff, and the trust board has previously told its members that a drop in trade at the retail store meant it was "simply not financially viable" and change was needed.

At a meeting last week, the trust's board agreed it needs additional information before making any decision on future structure.

Trust chairman Michael Fowler said a strategic review of the trust's activities and priorities began in 2019 and the dramatic and swift impacts of Covid-19 have heightened the need for change.

The trust says the return of domestic holidaymakers, while "very welcome", will not substitute for the economic loss of international tourists.

Sources of financial support for the trust are "extremely limited" but it would look into investigating funding opportunities over the next month.

Fowler says the board has commissioned an independent, detailed appraisal of the trust's current financial position and future financial forecast.

"Once we have that expert assessment, we can assess the practical options to secure the trust's long-term financial sustainability and strategic direction.

"We also intend making sure our volunteers and members have the same information. We appreciate that there is community interest in the future of the trust.

"Having said that, our priority is and by law must be, to consult first with our paid employees. Only once we have completed that process will we be able to meet with members and volunteers.

"Until we have worked through the review process, nothing is pre-determined and as we have said previously, the future of the Art Deco Festivals and our heritage preservation work is not in question.

He said to make a "prudent" decision, all facts needed to be on the table.

A decision is expected by the end of June.