Claverhouse, a social enterprise and charity in Dundee, has closed with immediate effect
A Dundee social enterprise and charity has closed its doors, letting go all 52 members of staff after going into liquidation.
Claverhouse, which provided employment services for the unemployed, announced on Friday it had appointed liquidators from FRP Advisory.
All 39 full-time members of staff and 13 workers on short-term contracts were let go with immediate effect.
Founded in 1981, Claverhouse operated as a social enterprise and charity through three companies, The Claverhouse Group, Claverhouse Training and Claverhouse Services.
Together they offered a wide range of employment training, interview training, work experience and job placement services, delivering those services in partnership with colleges, charities, training enterprises, economic development agencies and local government.
The business is suffering from a reduction in income levels, is unable to finance the direct and overhead costs from operations and is therefore no longer financially viable
Recently it had seen an increase in costs of delivering its projects and a reduction in its income leaving it unable to meet the direct costs and overheads of the business.
The liquidators revealed Claverhouse anticipated further significant losses in the next 12 months.
Commenting, joint liquidator Tom MacLennan, partner at FRP Advisory, said: “Although Claverhouse has a long and proud record helping to train, support and place the unemployed in work, and had built an extensive network of partnership organisations across Tayside, the business is suffering from a reduction in income levels, is unable to finance the direct and overhead costs from operations and is therefore no longer financially viable.
“As a result, all 39 full-time staff have been made redundant with immediate effect and the short term contracts have been ended.
"Efforts are being made to relocate the services contracts and, where possible, any directly associated staff, and we will work with all contracting organisations to try and secure a positive outcome.
“It is hoped that as many employees as possible will gain employment in relation to certain contracts being taken over by other service providers. Support will be provided to all affected staff.”
Margaret Wallace, head of employment service at the Scottish Council for Voluntary Organisations (SCVO), said SCVO had enjoyed a good relationship with Claverhouse and paid tribute to those who worked there.
She said: “We’re so sad to hear this news.
“Working with Claverhouse on New Deal and then Community Jobs Scotland, we found Alastair Cameron and his staff to be really helpful and to have the interests of their clients at the heart of everything they do.
“This is a real tragedy for the staff, their clients and efforts to boost employment levels in Dundee.”
