FRP appointed provisional liquidators at Dundee employment business

PARTNERS from FRP Advisory have been appointed joint provisional liquidators at Claverhouse, one of the largest providers for Tayside, Scotland, of employment support services to the unemployed.

Tom MacLennan and Iain Fraser were appointed to the Dundee-based business after it went into liquidation on 1 May.

Founded in 1981, Claverhouse operated as a social enterprise and charity through three companies that provided the unemployed with employment training, interview training, work experience and job placement services, in partnership with colleges, charities, training enterprises, economic development agencies and local government.

Although Claverhouse had a source of recurring income it had become increasingly dependent upon contractors to deliver enough placements to generate the levels of income required, which reduced its to control pricing and overall delivery of projects.

This resulted in a “material reduction” of income in recent years, FRP said.

“As a result, Claverhouse will be unable to meet the direct costs and overheads of the business with further significant losses being anticipated in the next 12 months,” it said.

Winding up process

As part of the winding up process, discussions are taking place with other contract providers in an effort to protect services and, where possible, the employment of staff.

Claverhouse employed 39 permanent staff with a further 13 staff on fixed term contracts.

Joint liquidator Tom MacLennan, partner at FRP Advisory, said: “Although Claverhouse has a long and proud record helping to train, support and place the unemployed in work, and had built an extensive network of partnership organisations across Tayside, the business is suffering from a reduction in income levels, is unable to finance the direct and overhead costs from operations and is therefore no longer financially viable.

“As a result, all 39 full-time staff have been made redundant with immediate effect and the short term contracts have been ended. Efforts are being made to relocate the services contracts and, where possible, any directly associated staff, and we will work with all contracting organisations to try and secure a positive outcome.

“It is hoped that as many employees as possible will gain employment in relation to certain contracts being taken over by other service providers. Support will be provided to all affected staff.”