Smith & Williamson appointed administrators of 4Children
Smith & Williamson has been appointed administrators of charity 4Children
TOP 50 FIRM Smith & Williamson has been appointed administrators of charity 4Children
Adam Stephens, Finbarr O’Connell and Andy McGill of Smith & Williamson were appointed joint administrators of 4Children on 31 August 2016.
4Children, a national charity providing support to children, young adults and their families, encountered financial difficulties earlier in the year as a result of funding pressures as well as the loss of certain key contracts.
The joint administrators have completed a number of transactions which have the effect of ensuring continuity of the vast majority of 4Children’s frontline services.
Over 60% of 4Children’s activities, including over 750 employees, have been transferred to Action for Children, a leading children’s charity, while almost all of the balance of services, including over 200 employees, are being transferred to various local authorities or to alternate providers.
It is anticipated that a relatively small number of sites (numbering less than three out of 142) will be closed. Head office staff have been made redundant.
Overall, of the 1,050+ 4Children employees, around 1,000 are anticipated as being transferred to new employers.
Adam Stephens, lead joint administrator of 4Children, said: “Smith & Williamson have been assisting 4Children for the last few months in identifying the various financial options available to it. It was apparent that the best option was to negotiate a transfer of the services to another not for profit organisation. In the end, this has involved far more than just a transfer to Action for Children.”
“Overall, this has been a very significant task, including negotiating with over 30 different parties, each requiring different terms. These have all been undertaken concurrently with the aim of all transfers occurring at the same time. As a result almost all of 4Children’s circa 1,050 employees have a new employer.”
“Unfortunately a relatively small number of locations (less than three) face closure and circa 65 members of staff are sadly entering a redundancy process. The appointment as joint administrators has enabled us to give the small number of former employees, who have regrettably been made redundant, support in making claims to the National Insurance Fund.”
“We are anticipating that thousands of children will be able to continue to access the same services and, as such, the team is working very closely with Action for Children and all local providers to ensure as smooth a transfer of services as possible.”