Trustees axe Lemon Tree concert venue

The Lemon Tree in Aberdeen, which is run by an independent charitable trust, is now in voluntary liquidation.

The arts venue has played host to artists and groups from the Jam to John Martyn and Babyshambles to Devendra Banhart.

But the board of directors decided unanimously that they had no choice but to shut down the Lemon Tree, despite an 11th-hour offer of financial help from the city council.

The Lemon Tree, which received an annual grant of 200,000 from the local authority, has faced a series of financial problems since opening in 1992.

The venue recorded a loss of almost 170,000 in 2004 and concerns about its future surfaced again last year, after the Scottish Arts Council withdrew its annual grant.

Its fate was sealed after the trust board rejected an offer of financial assistance from Aberdeen City Council. The closure decision will affect 56 full and part-time staff at the venue.

A spokesman for the local authority said: "Resources management committee members agreed unanimously that the venue should be offered the chance to take out a loan from the city council-administered Aberdeen Business Enterprise Scheme - or the Lemon Tree could have its overdraft facility underwritten up to a reasonable new limit by the city council. Neither option was taken up by the Lemon Tree's board."

In a statement, the board said: "The board agreed unanimously that the Lemon Tree had no alternative but to cease trading with immediate effect. All due legal processes will be followed in proceeding to voluntary liquidation.

"We regret the decision and the impact that there will inevitably be on staff and customers, particularly at this time of year, but we are unable to continue trading when we do not have enough cash to meet our liabilities."

Forthcoming events have been cancelled and it has yet to be established whether ticket holders will be able to get refunds for a series of scheduled concerts.

These include an appearance by rock band Big Country on 28 December and a Hogmanay show featuring the popular folk band Old Blind Dogs.

Hall Harper, the chairman of the Lemon Tree board, said yesterday: "There is nobody more upset than I am and I know my fellow directors are also extremely upset."

Asked if there was any hope of resurrecting the Lemon Tree as a performance venue, he replied: "At this stage I have absolutely no idea how that could happen."

Anne Begg, the Labour MP for Aberdeen South, described the closure as a "tragedy" for the North-east.

She said: "This is Aberdeen's only mid-range arts venue and its sudden closure is going to leave a huge hole in the arts scene in Aberdeen. It is a complete tragedy.

"It was one of a kind when it was set up and it's still the only venue many touring companies and community groups are able to use, and it's got a very loyal following."