The Work Foundation

Service(s): Corporate Insolvency Solutions, Restructuring Services
Sector: Charity and Not for Profit

FRP Advisory’s specialist Charity & Not for Profit insolvency & restructuring team facilitated the pre-pack acquisition of The Work Foundation, the UK’s leading independent authority on work and its future, by Lancaster University, following their appointment in October as Joint Provisional Liquidators of the insolvent Charity.

This was a good fit, as both The Work Foundation and Lancaster University saw substantial synergy in their activities.

Jason Baker and Jonathan Birch, of FRP Advisory, were appointed following a winding up petition filed in the High Court, citing a pension deficit that rendered the charity insolvent.

The Work Foundation was the sponsoring employer for a defined benefit pension fund established in 1951 and closed to new members in October 2001. Following discussions with various interested parties, and having received an offer for the charity’s business, after acting upon advice, the Board considered that the only mechanism available to the charity to affect a sale would be through an insolvency process. This was undertaken in consultation with all the relevant regulators and key creditors.

Jason Baker explained: "Unfortunately a pension deficit is becoming a critical issue for many organisations, both public and private, in particular, the third sector. Having met with representatives of most major creditors, of which the pension fund is the largest, it was agreed with them that the best possible outcome was to sell The Work Foundation as a going concern to an interested party where there were strong natural synergies.

"Following our engagement as advisers in early September, to facilitate the acquisition deal for The Work Foundation, we began discussions with various interested parties. Lancaster University expressed a strong interest in going into partnership with The Work Foundation and, as well as being an ideal fit, offered us the best opportunity to maximise the value of the organisation’s assets. We were able to assist in achieving a sale with the support of the Board of Trustees.

"Though, regrettably, there was a shortfall to creditors as a consequence of the sale, this was minimised. In achieving this outcome, all 43 jobs were safeguarded and the strong heritage of The Work Foundation was been preserved."

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