Relate in liquidation: Shropshire charity staff owed hundreds of pounds

Relate Shropshire, Herefordshire and North Staffordshire began a liquidation process last Thursday.

Its offices in Shrewsbury and shops around the region closed their doors and more than 70 people lost their jobs.

But now workers have been told they will not be paid their wages and need to contact the official liquidators to pursue any claim for monies outstanding.

Most of the staff who have lost their jobs were part-time employees. They include 42 counsellors, 11 trainers, 11 shop managers and eight office support staff. Around 40 volunteers were also involved in staffing its shops.

One worker, who did not wish to be named, said: "We are owed between four and six weeks money and have been told we will not not get it until after the creditors meeting has taken place.

"This is especially hard coming just before Christmas. We do not know when we will get our money and for some of us it is going to be a struggle. How could the board of trustees let it get to this situation? Surely they saw the signs and could have done something about it."

Another former member of staff said: "Relate's trustees have allowed the organisation to trade for months knowing it was insolvent. Their counsellors knew but were told to say nothing. Its delayed closure has resulted in debts of thousands of pounds to many local organisations including other charities."

Relate, which had been operating in the county for 20 years, had charity shops in Oswestry, Shrewsbury, Church Stretton, Wellington, Ellesmere, Wem and Market Drayton as well as its head office in the heart of Shrewsbury.

It also ran lottery lunches as well as regular fund raising events such as ladies' days and an annual Christmas dinner.

It is understood that staff will be able to claim pay owed up to October 27 as well as redundancy, pay in lieu of holidays not taken and sundry other benefits.

A briefing was held last week, the day before the news broke that the charity, which provided counselling for up to 12,000 clients per year, had gone bust at which the matter was discussed between staff and management.

Prior notification of the planned liquidation had been given to shops and counsellors to prepare them to run down their businesses and client portfolio and prepare for as 'orderly an exit as possible'.

It had been claimed that fewer individuals were making use of the charity's support services because of the proliferation of other providers.

More and more of the counsellors also opted for private practice although many continued to work with Relate as well.

No-one was available from the board of trustees to comment when contacted by the Shropshire Star.