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The Guardian - AU
The Guardian - AU
National
Matilda Boseley and Stephanie Convery

Carriageworks goes into voluntary administration citing 'irreparable loss of income' due to coronavirus

An art show at Carriageworks. The Sydney arts centre has gone into voluntary administration as a result of the coronavirus shutdown.
The Sydney arts centre Carriageworks has gone into voluntary administration as a result of the coronavirus shutdown. Photograph: Ryan Pierse/Getty Images

The Sydney arts centre Carriageworks has gone into voluntary administration after Covid-19 shutdowns resulted in an “irreparable loss of income”.

One of the largest multi-arts centres in Australia, Carriageworks is known for hosting a huge range of creative exhibits and festivals, with news of its demise triggering shock and dismay in the arts industry on Tuesday.

Since New South Wales placed bans on large gatherings in mid-March, Carriageworks has been forced to cancel or postpone all its major upcoming events, including the Sydney writers’ festival, Mercedes-Benz fashion week Australia and its popular weekend markets.

As a result, the company released a statement on Monday announcing that it had appointed voluntary administrators.

“Carriageworks generates 75% of its revenue outside of government funding, primarily through on-site events and programs,” a spokesperson said. “The sudden cancellation or postponement of six months of activities due to restrictions on public gatherings has resulted in an irreparable loss of income.”

The chief executive, Blair French, said the company had stood down all its casual staff and half of its permanent workforce.

“[We] asked those remaining to move to a three-day week. Focusing on essential work only we have been striving to find a way through the impact of the COVID-19 lockdown,” he said.

“During this time [Carriageworks] has become a Sydney institution attracting one million visitors a year to the site in Redfern and up to 5,000 people every Saturday to the Carriageworks Farmers Market. But with restrictions on social gatherings likely to remain in place for some time to come, the Board determined that it had no alternative but to place the company into Voluntary Administration.”

French said he was hopeful Carriageworks would be able to reopen when the lockdown lifted.

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This is the first NSW major arts centre to shut down, and the state government has not announced any specific stimulus packages for the arts sector. The premier, Gladys Berejilklian, did not address the closure of Carriageworks at her press conference on Tuesday.

Jack Symonds, artistic director of Sydney Chamber Opera, one of Carriageworks’ eight resident arts companies, said the SCO was “devastated” by the news, calling for more government support for the sector.

“Carriageworks has been our home since 2014, and we simply couldn’t make the work we do without their partnership,” Symonds said.

“We hope the NSW government will recognise the economic and cultural value of Carriageworks and take the steps necessary to see Carriageworks and its resident companies through to the other side of this crisis.”

He expressed disappointment at federal and state government actions to ameliorate the effects the coronavirus lockdowns have had on the arts sector, saying it was “simply not on par with other countries”.

“We were the first to stop and will be the last to start work again,” he said. “Australian support of the arts sector through these hard times should reflect its substantial role in our economy.”

Esther Anatolitis, executive director of the National Association for the Visual Arts, said while she was concerned about the resident companies, she was most concerned about the independent studio artists who work on site.

“Some of the biggest names in the arts in Australia, including Tony Albert, Nell, JD Reforma and Wrong Solo (Agatha Gothe-Snape & Brian Fuata), work in Carriageworks’ magnificent studios. It’s taken years for them to earn that place, and I’m not sure what will happen next for them.”

Artist Reko Rennie’s most recent commission for Carriageworks opened only last week, featuring the words “REMEMBER ME” – the Kamilaroi artist’s work marking the 250th anniversary since Captain Cook’s first landfall at Botany Bay – emblazoned above the entranceway to the precinct.

“It’s a devastating loss for arts and culture in this COVID-19 time. Carriageworks is a vital cultural institution that needs to be supported,” Rennie told Guardian Australia.

“Carriageworks has been integral to supporting many artists and my career throughout the years and I hope they receive the support to continue to do so.”

Others in the performing arts industry have likened the collapse of Carriageworks to its Redfern neighbour, the popular comedy and performing arts venue Giant Dwarf, being forced to move due to skyrocketing rents.

Phil Quinlan and Morgan Kelly from the KPMG accounting firm have been appointed as administrators.

Quinlan said he would be “exploring the possibility of a Deed of Company Arrangement to stabilise Carriageworks’ financial position”.

“All options are on the table for consideration,” he said.

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