Partner Article

ETEC Development Trust to cease trading

ETEC Development Trust are to cease trading after it was confirmed that the firm is unable to fully service its financial obligations.

The Sunderland based charity was founded in 1991, and provides youth and adult training across a range of vocational areas of study.

Gordon Goldie and Allan Kelly from Tait Walker have been appointed to act as liquidators for the company, and will now deal with any outstanding matters relating o ETEC Development Trust going forwards.

Chairman of Trustees at ETEC David Fallon attributed the closure to the loss of income streams, including non-payment from the Transition Fund and the abolition of Education Maintenance Allowance.

He commented: “I have been involved with ETEC since 1993 and have seen the organisation add real value to the community of Hendon and the East End, as well as the wider city of Sunderland.

“It has achieved excellence in a number of areas including a recent Ofsted visit, Investors In People and National Training Awards and has helped many people get into work with enhanced qualifications.

“Sadly the current marketplace doesn’t seem particularly supportive of organisations such as ours, with Government policy favouring the larger, corporate prime contractors and there is simply not the resource available to sustain ETEC.

15 staff will now be made redundant, while a further 12 will be transferred across to Sunderland City Council. Staff contracts were terminated as of the 5 March.

Tait Walker’s Gordon Goldie said: “Despite retaining a substantial asset base, ETEC’s current trading position and the prospect for future contracted work, combined with the current economic climate, has meant the organisation is no longer financially sustainable.

Mr Fallon concludes: “We will of course endeavour to ensure that all our learners are accommodated with appropriate providers and it is our hope that ETEC will be recognised for the positive contribution it made within the city of Sunderland over the past 30 years.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .