Oban FM will close “this week” unless a substantial cash injection can boost the volunteer-led company.
The station, based in the town’s Rockfield Centre, needs to raise a substantial cash injection to keep it on the airways.
The funding shortfall has meant staff and volunteers have been asked to chip in to keep it afloat.
And volunteers have told the Press and Journal they have felt pressured into fronting up cash in order to keep their seats at the station.
Bid to keep Oban FM on air
Chairman Campbell Cameron has lodged an application to Oban Common Good Fund, pleading for a substantial investment of around £10,000.
Mr Cameron, who previously stepped aside as chairman to allow a fresh voluntary board to take over, has been forced to reluctantly take back the role.
Mr Cameron presents the popular Drive Time show once a week.
In the past, the radio station has received government cash to keep it on air – during Covid a grant was paid.
It also received £24,o00 from Argyll and Bute Council in 2022.
Oban FM has “30 volunteers” and employs two members of staff. It is understood staff have not been paid, and an advertising manager post has not been filled.
We’ve been told some presenters have paid sums of up to £2,000 to keep themselves on air while others have been asked to “dig deep” to support the company.
Papers have been lodged with Argyll and Bute Council appealing for funds of up to £10,000 to keep them running.
Last year micro accounts lodged with Companies House, show the station finances have been shored up by a personal loan of £9,000 to Oban FM.
Mr Cameron, who previously stepped aside as chairman to allow a fresh voluntary board to take over, has reluctantly taken back the role.
Oban radio station fighting for survival
He says he now fights for the group’s very survival.
He said: “Oban FM faces a testing week ahead. It is a fight for its very existence.
“Cashflow is the key to business success and put simply we need a significant injection.”
Mr Cameron explained that due to the pandemic a lack of advertising during the cost-of-living crisis, and the move to the Rockfield Centre two years ago the group simply do not have any money.
Saying the group had taken the advice of an external consultant, he continued: “The lack of confidence of our business friends in these politically difficult times of change, has meant that our lifeblood – advertising revenue – is not sufficient to maintain our existence.”
“The news is not good.”
Oban FM ‘suppliers need paid’
He said suppliers were waiting to be paid.
The space the group lease at the Rockfield Centre is in deficit, and utility bills are outstanding.
Mr Cameron continued: “So, what do we need to survive? Immediate cash of £10,000 will pay the bills this month.
“Oban FM costs over £80,000 a year to maintain – £7,000 a month.”
Mr Cameron pleaded with business owners in Oban to help.
He said: “If 14 business leaders invested and effectively ‘owned’ the station at £500 per month we are safe.”
He said in return they would have advertising for a year and the radio station would be “on their side.”
“If we close it will cost much more than our deficit to reopen. It may never happen as a result.”
Re-opening an ongoing fundraising page, he asked: “If the community of 35,000 people donated £2 each we cover our costs.
“More likely 8,000 people donating £10 each and we are fluid.”
‘A service worth protecting’
Presenters we have spoken to feel they were being “forced” to pay £500 to the station to keep their seats in the studio.
One man said: “One of the presenters who can least afford it, has made a donation to Oban FM, and it was accepted. It is all wrong.
“We find ourselves in a very difficult situation, not wanting to give up a voluntary role we love.
“But find ourselves being asked for cash to keep the station open.
“It is a great community radio station.”
Mr Cameron declined to comment further on specific allegations.