Failed Shropshire Relate charity reveals £294,000 debts

Relate Shropshire, Herefordshire and North Staffordshire ceased trading last month with the loss of 72 jobs and the provision of a vital service to families.

A meeting of creditors of the operation which was based in Shrewsbury was held yesterday (MON).

The marriage guidance charity, which helped approximately 12,000 people each year, called in the liquidators amid rumours that it owed thousands of pounds for wages, counsellors fees, rent for its shops and offices and suppliers' costs.

Staff of the charity, which had had a presence in the region for 20 years, say they haven't been paid weeks of wages and are concerned that the matter will drag on until Christmas leaving them out of pocket over the festive season.

Yesterday's meeting, which was held at the Mytton and Mermaid Hotel at Atcham, near Shrewsbury, was chaired by insolvency practitioner Timothy Frank Corfield of Griffin & King, of Walsall.

Speaking after the meeting Richard Owen, of Griffin & King, said: "The company (Relate Shropshire, Herefordshire and North Staffordshire) is now in liquidation. Timothy Corfield is now the liquidator. We will be writing to all the creditors with the report from meeting in due course. It will include the assets and liabilities of the company."

The charity ceased to trade in late October with the loss of 72 jobs and debts of about £294,654.

Most of the staff who have lost their jobs were part-time employees.

They included 42 counsellors, 11 trainers, 11 shop managers and eight office support staff. About 40 volunteers were also involved.

The charity had offices in the heart of Shrewsbury from where it ran its counselling services. Relate's charity shops in Shrewsbury, Church Stretton, Wellington, Oswestry, Ellesmere, Wem and Market Drayton all closed with immediate effect.

Chris Sherwood, head of national charity Relate, said: "The creditors meeting relating to the closure of Relate Shropshire, Herefordshire and North Staffordshire was held this morning.

"The closure is a blow to the area and particularly difficult for people who were made redundant from the centre and shops."

He said that Relate services were still available We thank all of them for their patience and understanding at this difficult time.

"Relate Shropshire, Herefordshire and North Staffordshire was an independent local charity but it worked closely with Relate, the national charity.

"As former employees are aware, and as was reiterated at the meeting today, the financial difficulties that led to the closure mean any final pay and redundancy needs to be claimed via a government scheme. People are being fully supported through this process by the Licensed Insolvency Practitioner (LIP) that the centre and the national charity have been working with. This support will of course continue after today.

"The report prepared for creditors by the LIP showed that, as of today, the estimated final financial liabilities of the centre are £294,654. This figure may change as the insolvency process continues.

"Finally, I would like to remind local people in need of relationship support that Relate services are still available to them in the form of telephone, email, webcam and face-to-face counselling at neighbouring centres.

We have also set up a dedicated phone line, 01302 380 929, which people can call with any queries and for more information on how to access Relate's support."