Team Wearside Limited (03738061): administration
- Status
- Administration ended
- Administration began
- 2018-03-02
- Administrators' firm
- KRE Corporate Recovery
- Incorporated
- 1999-03-22
- Location
- Newcastle upon Tyne
- Industry
- 85410 Post-secondary non-tertiary education
Why it went into administration
- Management failings / irregularities
From the administrators' statement
The Company was formed in March 1999 for the purpose of providing training, delivering Apprenticeships, Adult Skills, Traineeships and other commercial training to disadvantaged individuals. Fraudulent activity invotving the theft of funds was discovered in November 2016, the extent and complexity of which became fully apparent in January 2017. The Trustees alerted the relevant bodies of the fraud.
Following the discovery of the fraud the Trustees of the charity prepared financial projections and with the support of a number of parties the Trustees were confident that the charity could continue to operate. Unfortunately the criteria for the funding of apprenticeships by the government changed and the income was less than anticipated. This, coupled with the depletion of the reserves as a result of the fraud and theft left the Trustees with no alternative but to cease the operations of the charity and seek insolvency advice.
Prior to the commencement of the Administration KRE (North East) Limited acted as advisors to the Board as a whole acting on behalf of the Company. No advice was given to the individual directors regarding the impact of the insolvency of the company on their personal financial affairs. Whilst not formally in office at that time, KRE (North East) Limited was still required to act in its dealings with the Company in accordance with the Insolvency Code of Ethics.
Administrators' statement of proposals (2018-11-06) · Companies House register