Administrators for R Fundraising, the telephone fundraising and outsourcing agency that which closed with the loss of 99 jobs in 2015, have moved to officially dissolve the company.
The latest administrators’ progress report suggests there will be enough money to fund payouts to former employees, but not to pay the £1.6m owed to unsecured creditors.
The agency’s parent company, Fundraising Initiatives, which has since closed, announced the closure of R Fundraising in July 2015, saying "current market conditions" had given it no choice and that its position had become "untenable".
Third Sector reported at the time that R Fundraising was understood to have been affected severely by the death of Olive Cooke in May 2015, with several large charity clients suspending or pulling out of their contracts with the agency.
The administrators, Begsby Traynor, filed notice at Companies House yesterday that the company would officially be dissolved.
In their initial assessment, the administrators said preferential creditors – the employees – were owed a combined total of £75,880 of arrears in wages and holiday pay.
The employees themselves will have received a payment from the Redundancy Payment Service at the beginning of the administration process. In the most recent administrators’ report, made in February, the administrators said there was likely to be enough to repay the RPS.
But it said: "Based upon realisations to date and estimated future realisations, we anticipate that there will be insufficient funds available to enable a dividend to be paid to the unsecured creditors."
The news comes just over a week after the fundraising technology and charity database consultancy Purple Vision announced in a statement on its website that it would cease trading and go into voluntary liquidation from 31 July.
The statement said: "The directors have concluded that, without further short-term funding, the business cannot continue trading with confidence that future obligations will be met, and have made the reluctant decision to close, rather than continue to trade and incur costs or make commitments that might not be honoured."
The company had been in operation for almost 14 years when it closed.
"We realise that this news will come as a shock to everyone we have worked with over many years," the statement said.
"By stopping at this time we have been able to ensure that all salaries are paid to date and to minimise the impact on those few trade creditors that exist. Even so, we realise that this decision will impact people’s lives and we very much regret the uncertainty that this will cause."