‘Ludicrous’ small dividend for community after Mexborough Community Partnership folded

Mexborough Community Partnership sold the asset in 2018 for a fraction of its worth and folded two years later.

Financial documents from 2017 had set the partnership’s assets at £900,000, but paperwork relating to the sale of the resource centre put the sale price at £120,000.

Pete Newman, owner of neighbouring Mexborough Business Centre, paid the cost up front.

The Coalfields Regeneration Trust, which had given the partnership a £300,000 grant in 2006, expressed disappointment at the time about the low sale price.

A winding up order was made against the partnership on July 14, 2020, following a creditor’s petition.

Last year, liquidator Edward Wetton’s third annual report into the affair said it appeared that the “grant funding terms have been breached” – but the conclusion was that no further action would be taken against any former directors of the partnership.

Now the final report from Mr Wetton has revealed that the final dividend from the partnership was £6,985, which goes to CRT to be spent in the Mexborough community.

Doncaster ward member Cllr Sean Gibbons, a former vice-chairman and director of MCP, was critical of the sale at the time.

And now, in response to the latest and final report, he said: “Mexborough’s most precious community asset was sold by the liquidated partnership, to a private businessman for a fraction of its worth.

“Furthermore, all that is left from the initial £300,000 grant via CRT many years ago is less than £7,000 for the local community to benefit from.

“This is absolutely ludicrous and wholly unacceptable.

“A vast chunk of the money paid for the building was absorbed in substantial liquidator and legal costs. Three detailed legal attempts were made to reverse the sale, but the legal battle failed.”

Cllr Gibbons added: “We are currently really short on community space and the resource centre would and should have continued to offer subsidised community space and local services to benefit Mexborough residents.”

Mexborough Business Centre declined to comment.