All 1,300 jobs at the collapsed drug and alcohol charity the Lifeline Project have been saved, the charity’s administrators have confirmed.
Lifeline, which officially entered administration on 1 June, collapsed last month despite posting an income of £61.4m in the year to 31 March 2016.
In a statement, FRP Advisory, which was appointed as administrator on Thursday, said it completed a transfer of about 1,000 staff and 40 projects to the social care and health charity Change, Grow, Live as soon as it took over Lifeline.
CGL has also taken on about 40 staff based at Lifeline’s headquarters, the statement said.
The remaining Lifeline projects, including approximately 300 staff, have been transferred to local authorities covering the areas affected.
The charity Addaction is also running a service involving 32 staff with the NHS and a local charity in Stoke-on-Trent, which is the biggest individual contract transferred back to local authority control.
"The sale of the Lifeline business has ensured that all staff employed by Lifeline, numbering around 1,300, have either transferred to CGL or to the other providers of services offered by the charity," a statement from FRP Advisory said.
According to FRP Advisory, Lifeline had 70 drug and alcohol projects and supported about 80,000 clients a year.
The administrator’s statement said that "further cuts to public expenditure budgets and some poorly funded projects" had led to turnover at the charity falling.
Lifeline had also made a significant loss from trading activities, FRP Advisory said.
David Thornhill, joint administrator of Lifeline, said: "Lifeline was committed to delivering a safe, high-quality service and continued to operate over the past few weeks leading up to administration while ensuring that it discharged its duties and responsibilities to ensure that security of service provision remained at the core of all decision making."
Thornhill, who is joined as administrator of Lifeline by FRP Advisory’s Russell Cash and Geoff Carton-Kelly, said that no service users had been affected by the changes, and local authorities and the Charity Commission had all been involved in the transfer of Lifeline’s services to the new providers.
He said: "Sadly this does now mean the demise of Lifeline, a charity that has been operating from Manchester for well over 40 years, and this is clearly a blow to the charitable sector. However, we are delighted to have been able to transfer the majority of Lifeline’s contracts to CGL, which has the resources and expertise to allow it to continue to prosper in this vital sector, providing much-needed support to vulnerable people around the UK."
David Biddle, chief executive of CGL, said: "We are delighted to have been able to step in to maintain many of the vital services previously provided by Lifeline and to have transferred the majority of staff to us. Those staff provide their invaluable expertise to services users and communities across the UK and it is work that must be continued. We are honoured to be part of that process."