Guidestar Data Services ceased trading 'because DSC could not afford to make it work'

Administrator's statement says Directory of Social Change found the database and software were not as complete as it thought


The charity data provider Guidestar Data Services was put into administration because the Directory of Social Change, which bought it in March this year, could not afford to resolve technical issues with the data and develop the website.

A statement of the administrator’s proposals, which has been filed with Companies House, says that after the DSC bought the company it "discovered that the database and software to enable the website and business to be operated was not as complete as thought".

The report says: "A considerable amount of time in development had to be expended in resolving the technical issues which arose. The costs of maintaining and improving the website were finally too high for DSC to fund and a decision was therefore taken to cease trading."

The report shows the company owes the DSC £267,000. It also shows that when the company was put into administration it was thought there was an agreement that required certain assets to be returned to Guidestar International, which used to own Guidestar Data Services.

The report says that after legal advice was obtained, it was determined that the assets, excluding the use of the name ‘Guidestar’, did belong to Guidestar Data Services and therefore could be sold. The assets were sold for £121,000 on 12 November, the report says.

It shows the company owed more than £461,000 to creditors when it went into administration. The creditors included the Charity Commission, which was owed £15,000, and Experian, which processed its data and was owed more than £164,000.

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