Groundwork Leicester and Leicestershire has gone into voluntary liquidation resulting in the redundancy of 26 employees.
The charity, which has been in operation since 1987, closed last week. Five employees are currently assisting with the wind-down of the organisation.
Accountancy firm BDO, which is working with the local Groundwork on its winding-up, said: “Creditors are being advised of the circumstances, and a meeting of the creditors is in the process of being arranged for later this month.”
According to its most recent accounts, the charity had a healthy income of £1.5m, but it spent around £1m on staff costs.
Last year, Groundwork Derby & Derbyshire closed after struggling to cope with payment-by-results funding.