A specialist engineering apprenticeship training provider has gone bust, leaving behind debts of more than £350,000 to several colleges.
Salford and Trafford Engineering Group Training Association Ltd (STEGTA), established in 1966, declared itself bankrupt in August, months after notifying stakeholders of financial issues.
STEGTA’s demise comes a year after it managed to retain its contract to deliver apprenticeship training, despite Ofsted downgrading it from ‘good’ to ‘inadequate’ due to safeguarding issues and its poor oversight of subcontractors.
The company, which operated as a “group training association” that was partly controlled by employers, has left debts to several colleges in the north of England to which it subcontracted training.
According to a report published by liquidators Leonard Curtis, STEGTA left behind debts of £650,000 – with only £130,000 in assets to be shared out among employees, colleges, and other trade creditors.
However, when asked what pushed the company into financial ruin, a spokesperson for the liquidator said: “We are unable to give any further information at the moment.”
Chief executive John Whitby did not respond to a request for comment from FE Week.
The company’s largest debts are £104,000 owed to Leeds City College, £80,000 to City of Westminster College, £67,000 to Wigan and Leigh College, and £40,000 to Trafford and College.
A spokesperson for Trafford and Stockport College Group said it had a “strong partnership” with STEGTA for many years, working together to provide “exceptional training.”
They added: “It is unfortunate that STEGTA has had to close, as they played a significant role in shaping the future careers of many skilled professionals.”
York College confirmed that it has written off a debt of £10,000.
It is understood to have subcontracted training both to and from STEGTA.
Following its ‘inadequate’ Ofsted grade, STEGTA was not struck off the apprenticeship register, in line with usual Education and Skills Funding Agency policy rules, although it was suspended for several months.
At the time, Whitby told FE Week the ESFA supported STEGTA through its new intervention strategy.
Under that policy, the ESFA identified the training provider as being “at risk” and placed it under intervention before a monitoring inspection.
This found the company was making “reasonable progress,” partly thanks to a “wholescale review of safeguarding” which included the appointment of two extra safeguarding officers.
Ofsted’s “Inadequate” regime and policies has killed off many ITP’s and the ESFA’s absurd policy of cancelling contracts based on such biased Ofsted reports is mindless.
At what point is FE Week going to actually investigate these countless grade 4s and the ESFA response to them. Or do they like to keep these big boys happy for some reason. ITPs are being killed off due to poor rules, structure and a failing mainstream education system.