Liquidators have been appointed at the British Youth Council (BYC), with 17 staff being made redundant.
James Sleight and Peter Hart of PKF Littlejohn Advisory have been appointed joint liquidators of the charity following a creditors’ meeting on Friday 26 April.
BYC previously announced it is set to close after more than 75 years of service to young people due to “ongoing financial challenges”.
It was initially set up by the Foreign Office in 1948, however, in 1963 the organisation became independent of the government as a charity.
As part of the liquidation process, the BYC’s 17 employees have been made redundant.
The joint liquidators said they have been assisting employees with their claims for government compensation.
Retailer’s collapse contributed to closure
The charity’s closure was accelerated by the February 2024 collapse of high street chain the Body Shop, which had contributed significantly to the BYC’s running costs.
Decisions by other partners not to renew their funding of BYC because of economic challenges also contributed.
In addition to private funding, BYC also received a grant from the Department of Culture, Media and Sport.
PKF Littlejohn Advisory said the charity’s cashflow challenges began to crystalise at the end of 2023 when an expected £36,000 from the Body Shop “failed to materialise”.
The board recognised that income generation was not going to recover before the year end, the liquidator statement reads.
Sleight said: “Unfortunately, and despite reasonable prospects to return the charity to a solvent position, when further support from major funders failed to materialise, the decision was taken to place the charity into a creditors’ voluntary liquidation.
“Now, after a creditors’ meeting, the charity will be wound up.”
The liquidators’ statement reads that the nature of the organisation means that outstanding debts are comparatively low in value and two creditors account for 30% of the total debt.
Lack of tangible assets means that creditors are unlikely to see a dividend, although there is potential value in the sale of intangible assets including the brand which may also enable some form of the charity’s work to continue in the future, it adds.
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