Nottingham City Council may not recover funds from the failed Nottingham Castle Trust. The council faces potential losses totaling over £2.6 million due to unpaid debts.

Nottingham: It’s looking pretty grim for Nottingham City Council. They might not see a dime from the Nottingham Castle Trust, which went belly up after just over a year.
The council lent the trust about £1.8 million and still has £821,000 in unpaid invoices. Now, the liquidators say it’s uncertain if they’ll get anything back.
When the trust went into liquidation, it owed money to nearly 50 organizations. The council is the biggest creditor, and they might have to write off a whopping £2.68 million.
Liquidators are trying to sell off the trust’s assets to pay back creditors. But since the council is an unsecured creditor, they’ll be at the back of the line for any cash that comes in.
Other big names like Arts Council England are also waiting for their share. The trust owes over £3.5 million to unsecured creditors, but so far, no one has seen a penny.
Liquidators estimate they might only recover around £404,310 from selling assets. They’re working hard to get that money out, but it’s a slow process.
In their latest report, they mentioned it’s uncertain if unsecured creditors will even get a payout. They’re hoping to recover some cash through a Gift Aid claim with HMRC.
So far, they’ve brought in about £38,000 from that claim. They’re also looking into some donations that weren’t included in the original claim, which could add another £24,000.
Former employees have already received around £20,000. The council ran Nottingham Castle until 2018, then handed control to the trust, which reopened in 2021.
But after a year of complaints and issues, the trust went into liquidation in November 2022. The council took back control and reopened the site in summer 2023.
Now, they’re planning to run it through a charitable development trust. It’s a tough situation, and many are left wondering what went wrong.