Elmfield Training purchased in pre-pack after going into administration

The majority of Elmfield Training’s business and assets has been sold to EQL Solutions Limited, which is one hundred per cent owned by CareTech Holdings plc.

The sale, which excludes the Morrisons contract, came shortly after Deloitte, the business advisory firm, were appointed Joint Administrators of Elmfield.

FE Week understands the acquisition has been completed as part of a pre-pack insolvency for a cash payment of £1.5m.

The statement yesterday from Deloitte reads: “The sale secured over 300 jobs and maintained continuity of service for around 5,700 people currently enrolled on Elmfield’s training programmes. The Morrisons contract is likely to be taken over by another provider, along with approximately 50 additional staff associated with this contract.”

In an email seen by FE Week, staff working on the Morrisons contract have been told by the administrators: “There is no guarantee that we will be successful in completing a transfer, and as such we cannot confirm that you will be paid the wages that are owed to you up to today, or that you will not be made redundant. Unless a transfer is made, you will not be paid for any wages or expenses incurred from the date of administration.”

Farouq Sheikh, CareTech’s Executive Chairman, said in a statement: “CareTech is a principled provider of social care with a strong public service ethos. Our support services for young people in transition to adult life are well known for their outstanding results and for some time we have felt that a new division focusing on apprenticeships would enhance and support many aspects of our outcomes based approach.

“The acquisition of Elmfield provides an opportunity to draw the professionalism of their staff into a new and forward-looking partnership with a national social care provider.

“We are grateful for the support and assistance of the Skills Funding Agency in enabling this transaction to be successfully concluded in a timely manner.”

Read more in the next edition of FE Week 

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