Three counties law firm helps to save charity
Led by one of the Joint Administrators Craig Povey, a Partner at Chantrey Vellacott DFK Birmingham office, and Dan Cambridge, a Partner in the Insolvency team at Harrison Clark Rickerbys, the expert teams of staff and advisers worked in partnership to secure the future of the charitable business.
21 October 2013
The transfer of the business to Birmingham-based Midland Heart Limited (‘Midland Heart’) - one of the UK’s top ten housing and care organisations – was done with minimal disruption, resulting in the care facility remaining fully operational at all times and ensuring the highest standards of care for the remaining residents.
The charity ran a care facility providing care for young adults with learning difficulties and seven residents were in occupation at the time of Administration.
Following the sale of the business and certain assets, all creditors of the company have been paid in full and a further distribution is being made to several like-minded charities, all of which provide similar charitable services to the local community.
Craig Povey, Chantrey Vellacott DFK, commented; “Entrust Care ran into financial difficulty partly due to falling donations and uncertainty over future contracts with Coventry City Council.
Our main priority throughout the Administration was to ensure that the highest level of care was provided to the residents and we are pleased to note that there was no disruption to outstanding care services provided by the staff to the seven remaining residents at Brookview.
I am also delighted to note that following the sale of the business, all 25 staff employed by Entrust Care at Brookview have transferred over to Midland Heart.
This clearly represents a fantastic result for residents, creditors and local charities alike.”
Harrison Clark Rickerbys’ Dan Cambridge added; "We are delighted with this outcome. From the outset our main priority was to safeguard the charitable purpose and ensure the protection of the individuals in care. The administration has not only secured the continuation of the facility but has also provided a distribution to a number of charities selected by the trustees of the charity."