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All jobs lost as Scottish charity collapses after 40 years

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All jobs lost as Scottish charity collapses after 40 years

ALL staff have been made redundant at a Scottish charity after the organisation went into liquidation.

Right Track Scotland Limited has appointed William Duncan as liquidator after it collapsed.

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Right Track Scotland Limited offers a range of programmes inclduing outdoor recreationCredit: Getty

The board of the company placed it into insolvency after it experienced “funding disruption”.

According to The Herald, its accounts for 2023 showed a drop in income by £284,800 against 2022.

As a result, the charity, registered in Glasgow, has closed its doors for the final time after operating for over 41 years.

And all 20 members of staff were made redundant.

The company helps young adults see their potential and then offers them the best support to help them achieve it.

They help those who lack confidence or an understanding of different labour market opportunities.

As a result, they offer a range of programmes that include outdoor recreation and sports.

They also offer access to training and further education.

In a statement, Right Track Scotland Limited said: “It is with a very heavy heart, and significant frustration, that the board of directors confirm the permanent closure of Right Track Scotland Limited.

“Since our launch in 1983, Right Track has supported young people with the most challenging of difficulties to overcome in order that they can participate positively in employment, training or further education.

Restaurant Closures Evergreen

“Operating in Central Scotland’s most socially and economically deprived areas our ambition has always been to try to broaden horizons, raise aspiration and arm the young people we support with some tools to help them break what might otherwise be a perpetual cycle of disadvantage, depravation and hopelessness.”

It added: “We are proud of each and every participant who has come to us and seized their opportunity to make a difference in their life as well as to contribute positively to society.

It is with a very heavy heart, and significant frustration, that the board of directors confirm the permanent closure

Right Track Scotland Limited statement

“Our gratitude goes to all of the staff, supporters, donors, volunteers, employers large and small, and our landlords who have stood behind our ambition, our ethos and our work for four decades.

“Too many to name, but each and every one should be celebrated for the incredible contribution they have made.

“Our anxiety, frustration, and our warning on what lies ahead must be directed to those who represent our society through local, national and UK government:  the need we have fulfilled over the last 40 years is not going away – if anything it will worsen.”

What does insolvency mean?

A COMPANY is insolvent when it can’t pay its debts.

This could mean it can’t pay bills when they become due, or it has more liabilities than assets on its balance sheet.

A company that is insolvent is in danger of being closed down.

However, company directors may be able to take action that allows the company to continue trading.

Insolvency’ describes both the situation an insolvent company is in, and also the various legal procedures for dealing with this situation under the Insolvency Act 1986.

Three options can allow an insolvent company to continue trading. Directors can:

  • contact all your creditors to see if you can reach an informal agreement
  • enter into a company voluntary arrangement
  • put the company into administration, offering some respite from creditor action and enabling:
    – the company to continue
    – property to be sold

Directors also have the option of liquidating (‘winding up’) the company.

This means the company is closed down and its assets are sold and distributed to its creditors.

Credit Gov.uk

It continued: “We have worked with over 27,000 young people aged 14-18 years, all of whom had ‘additional support needs’.

“Funding disruption has meant the shrinking of services and geographical coverage in recent years (previously Edinburgh and Glasgow, most recently Glasgow only).

Read more on the Scottish Sun

“Our staffing has had to cut in recent years as we sought to manage uncertainty of contract award and payment.

“At time of our closure 20 staff have been made redundant.”

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