Pell & Bales goes into liquidation with the loss of more than 100 jobs

24 Aug 2016 News

Telephone fundraising agency Pell & Bales has been placed into liquidation by its creditors, less than two months after it was sold by the Parseq Group.

According to a statement released by Pell & Bales' public relations team, the management team of the agency was forced to place the company into liquidation yesterday, with the loss of 20 full time jobs. The company also had 86 employees on zero-hour contracts.

A spokeswoman for Pell & Bales said that staff would not be paid for their last month work and were being encouraged to make a claim to the insolvency firm Moorfields Corporate Recovery, which is handling the liquidation.

The statement blamed “a period of intense media scrutiny and government measures to regulate the activities of telephone donation agencies” and a “challenging market” for Pell & Bales’ closure.

“Pell & Bales and its sister company have undergone extensive restructuring of their operations over the past few months,” said the statement. “However, despite these measures the challenging market place has meant it just is not possible to maintain the Pell & Bales business”.

According to the statement, Pure Fundraising – which was also sold by Parseq in a package with Pell & Bales in June – will continue to operate. Between Pell & Bales and Pure Fundraising, the agencies employed as many as 276 people before it was sold off by Parseq.  

In October last year, Pell & Bales announced that it had shed over 130 jobs due to a 30 per cent decrease in overall turnover. In October 2015 the agency employed around 314 staff members, down from over 450 the previous year.

Pell & Bales’ full accounts for the year ending 31 December 2014 showed that the agency’s total income fell by over £4m in that financial year to £6.9m. Its operating profits also fell by over 60 per cent.

During the summer of 2015 Pell & Bales was caught up in what it called an “accusatory” article in the Sun which was critical of its fundraising practices. Pell & Bales threatened to sue the Sun at the time, though no legal action ever seemed to take place.

The agency had also been in a corporate voluntary arrangement since 2011. Documents published on Companies House show that it owed creditors more than £1m. The voluntary arrangement was completed in June.

A spokesman from the Institute of Fundraising said: "It is regretful that Pell & Bales have ceased trading having been a partner to several charities over many years. It is a difficult time, particularly for those fundraising staff who we understand have lost their jobs. 

"We are working to understand in the coming days how charities and the wider fundraising community may be impacted."

 

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