Russell-Cooke’s charity and insolvency specialists advised 4Children, its trustee board and the joint administrators (Smith & Williamson), in the run up to the administration of 4Children, on 31 August 2016 and on a number of transactions with Action for Children and others.
4Children is a national charity providing support to children, young adults and their families. 4Children encountered financial difficulties earlier in the year as a result of funding pressures as well as the loss of certain key contracts.
4Children entered into administration on 31 August 2016. Subsequently, the joint administrators completed a number of transactions which have the effect of ensuring continuity of the majority of 4Children’s frontline services.
The majority of the charity’s services, including around 950 employees, will be transferred to Action for Children, local authorities and alternative local providers, with only a small proportion (3%) of services facing closure.
Andrew Studd, head of the charity and social business team, commented:
“At a difficult time for publically funded charities, we worked alongside 4Children’s trustees and management, and the joint administrators, to find the best possible solution for 4Children, its staff and their clients. The team provided a wide range of advice to trustees in relation to their duties and on the legal issues that arose in relation to the transfers to Action for Children and other parties. We are delighted that such a large number of services and jobs were preserved”.