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Vbase, who runs the Crusaders’ Orangetheory Stadium, is likely to fire 60% of the permanent staff.
Vbase, the company that runs some of Christchurch’s largest event venues, is willing to lay off 60 percent of the permanent staff due to the coronavirus blockade.
The company has had no revenue since the government stopped public events on March 17 as part of the response to the pandemic.
Owned by Christchurch City Council, Vbase employs more than 65 full-time and part-time employees and hundreds of casual workers.
In addition to owning and managing Christchurch City Hall and Horncastle Arena, it also manages the Orangetheory Stadium in Addington, Hagley Oval, and the Wigram Air Force Museum on behalf of other owners.
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In a statement Wednesday, Vbase said it hoped to be able to hold “few or no events” until later this year, and that recovery to pre-Covid-19 levels will take at least 12 to 18 months.
“While prospects remain uncertain, we anticipate that border restrictions, and public gathering and social distancing requirements will have a prolonged impact on the event market.
Liz McDonald / Things Christchurch City Hall, which has been closed since March 17.
“When venues can reopen their businesses, the longer-term downturn is also expected to affect attendance at the event, and therefore the viability of the event.
“The public demand for events is not expected to be sufficient to offset these negative forces.”
While staff has been retained in the short term through support from the government’s employer wage subsidy and an agreement to cut pay by 20 percent, the company said the end of the subsidy next month forced it to reduce its size, given the long term. outlook and expected slow recovery.
“This means that Vbase is proposing to destabilize 45 full-time and part-time jobs, representing a 60 percent reduction in permanent staff,” the company said.
“It is proposed to retain all casual positions, however, people in these positions are unlikely to be assigned work until at least October 2020.”
A statement from the company’s board of directors added: “This is a distressing time for everyone, particularly those who are facing leaving our company.
“Many of these people have highly valued specialized skills and will be a loss to Vbase.”
Vbase organized 374 events at its venues in the 12 months through June of last year, earning $ 18.2 million in revenue.
But it still recorded a loss of $ 15.2 million, mainly due to an increase in the cost of repairs to the City Council.
As of December, the company was on track to post a loss of $ 3.1 million in the current year, a significant improvement on the $ 39.2 million lost in 2013-14.
