Focal Radio faces collapse as tycoon pulls out
TROUBLED community broadcaster Focal Radio is on the verge of collapse after tycoon Mo Chaudry said he had no choice but to pull out of the venture.
The WaterWorld boss said he was forced to withdraw his investment in the station, putting 23 jobs at risk, because the public sector had turned its back on the venture after he was arrested last month by detectives investigating allegations of corruption involving Stoke-on-Trent City Council.
The multi-millionaire, who has vowed to clear his name and has not been charged with any offence, said he could not continue to fund loss-making Focal without financial support linked to airtime, advertising space and sponsorship of programmes.
The 48-year-old said he bought Focal in March to keep it as a voice for the region – not as a profit-making venture. He is believed to have invested about £80,000 to save the station.
Mr Choudry said: "The public sector support has evaporated since my arrest and without that Focal is not a viable proposition.
"I have made a huge personal commitment in terms of money, time and energy to build-up the business since inception for no financial gain.
"I liked its community ethos and felt that the people of the region needed to have a voice.
"Since the police inquiry became public, the public sector has declined to do business with Focal.
"The whole business model was based on engagement with the public sector and as a result I have been left with no option but to wind down the operation."
Focal, the region's first new commercial radio station for 25 years, disappeared from the airwaves in February after the company behind it ran into trouble.
Now that Mr Choudry has decided to pull out, bosses need to find the cash to pay him back.
The station was the idea of Potteries broadcasting legend Sam Plank and his wife Verity Hilton, and the couple today issued a rallying cry for investors to come forward.
Sam, who has paid staff out of his own pocket since May 13, said: "I'm saddened over the way the situation has developed. However, there is now a golden opportunity for the listeners of this area to invest in a radio station that is truly theirs and looks positively at what happens in their patch. I would love to hear from anyone who feels they can help."
From today, Focal will be playing music and a message explaining the situation.
Verity said: "This is a fantastic station with a growing audience and it would be a tragedy if it had to close. Focal Radio has received interest from listeners who would like to own a share in 'their' radio station, but we need to ensure there is enough in the pot to buy the equipment off WaterWorld Holdings and repay Mo for his investment."
Focal, which broadcasts to Staffordshire and Cheshire through digital radio and the internet, was first proposed in 2007 when Sam was axed from Signal Radio.
After problems over its lease, it was eventually launched in November.
That, coupled with a fall in advertising, meant the company behind it was forced into liquidation in February.
Related links:
Tycoon puts Focal Radio back on the air
New radio station sinks into liquidation
15 Comments
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by Jake, Meir
Monday, May 25 2009, 10:59AM
“Useless presenters, sad Sam, and kids from college Verity on a ego trip - its bound to fail. Whoever is daft enough to give them money will lose it.”
by Gaz, Chell
Saturday, May 23 2009, 3:05PM
“The simple fact is that local buinesses strugle to find money for advertising in the current economic climate.
Even if the climate was better a brand new radio station in stoke was always going to find it diffucult to get off the ground!
Focal Radio has been going for less than 12 months and has had a lot to deal with, so yes the station does need work but it doesnt help when people are so eager to shoot down a new project that has barely had time to breathe!!
You wouldn't shout at a baby for not been able to walk straight out of the whomb!
The RA (radio authority) has said they are not dishing out any more FM lisences. Moorlands radio is set to go on air on an FM lisence in september but other than that, unless signal gets sold off and rebranded as a Galaxy or Century i dont think we can expect to see anymore radio stations in staffordshire / cheshire!”
by Mel, Longton
Thursday, May 21 2009, 8:22PM
“I still don't see it as a 'cause' to get involved in whether it's a case of 'buying' in or donating.”
by Keith, Stoke
Thursday, May 21 2009, 8:05PM
“It says nothing about donating, it says BUY into Focal radio. That's different, you would become a shareholder.”
by Dave, Longton and proud
Thursday, May 21 2009, 7:09PM
“Mel is right, we should give money to deserving causes not this! I find the comment from Tom at Focal arrogant to think that people should give them money!”
by Mel, Longton
Thursday, May 21 2009, 6:01PM
“If I was to give £10 (or any amount!) away it would be going to a deserving charity like the Donna Louise Trust and not some failing radio station, community or otherwise!”
by Niki, Meir, Stoke
Thursday, May 21 2009, 4:22PM
“At the end of the day whether it is a community station or otherwise, you buy a station in a bid to make money. If it¿s not doing that then its time to close.
No offence to Focal Radio or the people who work there but they offer nothing to make people want to rush out and buy DAB radios.
The result, no listeners = no advertisers¿ no advertisers = no money... Simple.
Unless the government do what they are doing to TV and force a digital switchover to DAB then I think every DAB only station is doomed.
What we really need is a one or two new FM stations as our current choice is rubbish. Stoke is well underserved by FM stations. Something like Galaxy & Magic on FM would be ace.”
by Nick, Meir, Stoke
Thursday, May 21 2009, 4:21PM
“At the end of the day whether it is a community station or otherwise, you buy a station in a bid to make money. If it¿s not doing that then its time to close.
No offence to Focal Radio or the people who work there but they offer nothing to make people want to rush out and buy DAB radios.
The result, no listeners = no advertisers¿ no advertisers = no money... Simple.
Unless the government do what they are doing to TV and force a digital switchover to DAB then I think every DAB only station is doomed.
What we really need is a one or two new FM stations as our current choice is rubbish. Stoke is well underserved by FM stations. Something like Galaxy & Magic on FM would be ace.”
by Trevor, Meir
Thursday, May 21 2009, 2:16PM
“If a millionaire really believed in something in the community he would have the money to continue to back it. Poor excuse Mo. Mind you he must have had an off day thinking that people would listen!”
by Tom, Stafford
Thursday, May 21 2009, 12:21PM
“I think it's a great shame about Focal. I have always enjoyed listening to it. A local, community based station, run by local people for local people. It does what Radio Stoke used to do (and still should do) before it became a yob station. There's definitely a need in the community for Focal, and DAB is the future. Sam and Verity (and the rest of the team) have worked extremely hard to get Focal up and running. I think the listeners should offer some form of tangible support, because community radio by its very nature is a two way thing.”