BXL staff made redundant following collapse

Finance | Kirsty Weakley | 17 Feb 2012

All 26 staff at a Birmingham education charity have been made redundant following the charity’s collapse last month.

BXL services, which provided career advice and organised work experience placements went into administration in January and the administrator Pricewaterhouse Coopers (PwC) has been unable to find a buyer.

In a statement John Barrell, director of the Midlands team at PwC said: “Unfortunately to date, no purchaser has been found and therefore the workforce at BXL were all made redundant on 10 February 2012.”

He added that the administrator was continuing to look for a buyer who may be interested in continuing the services.

When the administrator was appointed in January, chief executive John Long blamed cuts in government funding for the collapse of the charity.

He said: “We have been battling against a substantial pension deficit for some time, one that we unfortunately inherited as part of the local authorities of Birmingham and Solihull taking over the Connexions contract in 2008.”

According to its annual accounts filed with the Charity Commission, BXL’s income in 2008 was more than £2m but following the loss of a grant from Birmingham City Council and the Learning Skills Council its income dropped to £9.5m in 2009. In 2011 its income was just over £2m.

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