Legal advice charity Advising Communities to go into liquidation

A statement by the London-based organisation says the decision has been made because of a precarious financial position

The London legal advice charity Advising Communities is to go into liquidation with the likely loss of 25 jobs. 

A statement on the charity’s website said its board had decided to put the charity into insolvency because of its precarious financial situation.

The charity’s accounts for the year to 31 March 2018 show an income of almost £1.3m and a similar level of spending.

But the charity had spent slightly more than its income in three of the past five years, according to its entry on the Charity Commission’s website.

The accounts also show that the charity had total funds of £90,597, but free reserves were minus £5,833.

The charity had recently redeveloped its premises, according to the accounts, which also say that the charity was managing "an increasingly complicated payment-on-results environment".

The charity had decided to appoint insolvency practitioners on 10 April, its statement said.

But it added that on 25 April the charity was informed that its financial situation had worsened.

"Having reviewed all options available to the board, we have taken the advice to cease trading in order to limit further liabilities," the statement said.

"We are also very sorry that we will be unable to continue our work with residents of Southwark, Lambeth, Lewisham, Wandsworth and across all London boroughs, and that we have been unable to give more notice to our clients and stakeholders."

FRP Advisory LLP has been appointed to manage the insolvency process, the charity’s statement said.

A spokeswoman for FRP said: "FRP Advisory is currently advising the board of trustees of Advising Communities.

"Due to the financial position, the company’s operations had to cease on 1 May, and the company will shortly be placed into liquidation.

"Steps have been taken to ensure all employees, clients and funders have been notified of the closure. Existing clients have also been signposted towards alternative providers of support."

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