TRUSTEES at Hexham Community Centre have addressed rumours circulating the town that the facility is insolvent.

After a challenging winter, volunteers who run the community hub on Gilesgate, sent out a plea for help back in February, after admitting costly repairs and rising running costs had left them with a cash flow problem.

The appeal prompted a string of generous donations and help, but almost six months down the line when, say members of the board, things are looking up, the centre still can’t quash the rumours.

The appeal generated £1,500; a £20,000 SITA funding bid by youngsters from Hexham Youth Initiative for building improvement work has been successful; and £5,000 has been pledged by Northumberland county councillor for Hexham East, Cath Homer, to bring the building’s ageing lift up to modern standards.

“What people are hearing is old information; we’re in a much stronger position than we were a few months ago,” said chairman of trustees, Deni Riach.

“We’re like any third sector business – we’ve gone through a rough patch, but we are definitely not insolvent.”

Charity Children North-East is poised to join the ranks of organisations renting space in the building, which currently include the Citizens’ Advice Bureau, Gateway into the Community and the Hexham Community Pre-School Playgroup.

“We’ve had a lot of free advice from financial folk around the town and have moved things around to welcome Children North-East as a new tenant from August,” said Keda Norman, who is a trustee and runs the youth initiative.

“We’ve also started collecting rents weekly and monthly, instead of quarterly, to help us keep track of things more easily.”

Small increases in rents and hire charges, changes in gas and electricity suppliers and good housekeeping has allowed savings to be made.

And in the last few months, a “small surplus” has been generated, which will help build up reserves once again.

“You’ve got to remember that we had a really hard winter,” said Keda.

“And we were finding it very difficult to keep ourselves going after problems with the roof, the boiler and a whole host of other things hit us at once.”

But after a forward planning strategy day held in association with the Northumberland Social Enterprise Unit, grant applications are being made to make the centre’s lunch club more sustainable and for a new project called Open Arms, which it is hoped can be launched in September to tackle social isolation.

“This is not just a big village hall, but a place where people can come and be directed towards any help they may need,” said Deni.

“We want to build on that so we’re looking at ways we can work with Hexham Community Partnership and the West Northumberland Food Bank.”

Former mayor of Hexham and town councillor, Terry Robson, said councillors had met two of the trustees and were waiting for a date to meet the whole board.

“The town council has raised concerns after hearing of problems at the centre,” he said.

“We help fund the youth initiative, so were naturally concerned about what would happen if the centre were to fail.

“We remain supportive of the community centre and plan to keep reviewing things to make sure the situation there is under control.”