Jewellery academy returns to old owner in cut-price deal with administrators

An overseas businessman whose adult education provider went bust last year has bought a subsidiary training company back from administrators for millions less than promised after his brother and financial backer was declared bankrupt.

British Academy of Jewellery (BAJ) was put up for sale after its parent company, London-based Free To Learn, went bust – leaving more than £7 million in unpaid debts.

In April, joint administrators appointed to manage the insolvent company’s affairs agreed to sell the specialist jewellery skills training provider back to its original owner, Argentina-based civil servant Damian Gherscovic, for £5 million, including a £1 million downpayment.

But according to an update report on Free To Learn’s insolvency published last week, joint administrators Mark Reynolds and Daniel Leigh settled for a heavily discounted price of £1.5 million in October.

BAJ is one of England’s few training providers specialising in jewellery skills and delivers level 3 qualifications to around 120 students in London and Birmingham. It is listed on the government’s official register of apprenticeship providers.

Its parent company’s financial difficulties briefly led to a suspension of new starts last summer.

The administrators, who secured a 20 per cent cut of BAJ’s reduced price worth £300,000 as part of their fee agreement, did not receive any of the 36 expected £111,111 monthly payments from the company and its owner.

Reynolds and Leigh appear to have agreed the lower price after realising bankruptcy proceedings against Damian’s brother Gabriel Gherscovic, CEO of the companies and guarantor to the BAJ purchase, had a “severely detrimental impact” on their chances of being paid the full price.

The administrators’ report wrote: “Whilst an agreement was entered into, the terms of repayment were not adhered to.

“Following negotiations, and on advice, taking into account the financial position of BAJ, that settlement agreement provided for a revised consideration of £1,500,000.

“£500,000 was subsequently received during the period. No further funds are to be received in this regard.”

A spokesperson for the administrators told FE Week: “Due to a change of circumstances, the initial consideration proved unachievable. The joint administrators investigated potential avenues of recovery and have negotiated a settlement that reflects the strongest commercial position available.”

FE Week understands that while Damian Gherscovic is listed as the only person with significant control of BAJ, and Free To Learn until its insolvency, he does not have operational control over them.

When approached for comment, he confirmed that he is a civil servant in the Argentinian government’s National Institute of Industrial Technology, where he dedicates his “full professional attention” to his role as an expert in wood preservation.

His brother Gabriel Gherscovic (pictured) and sister-in-law Gabriele Gherscovic, who was also a former BAJ director, were both declared bankrupt on September 9 over a £12.9 million debt to lender GB Bank.

Gabriel has long been the CEO and public face of both BAJ and Free To Learn, while his wife Gabriele was listed as ultimate owner until their transfer to Damian in 2020.

Before Free To Learn’s bankruptcy in late 2024, Gabriel Gherscovic had built up a property portfolio that included the London headquarters of BAJ, which he rented back to the company for a £360,000 annual rent, an eight-bedroom mansion in Highgate’s ‘Billionaire’s Row’ valued at £12 million, and a former Jewish Museum in Camden valued at up to £13 million.

Records show that the properties, which were owned via holding companies, are now controlled by insolvency practitioners.

Training provider’s collapse

Free To Learn Ltd had held several national and local adult education contracts worth more than £10 million per year.

It was graded ‘inadequate’ by Ofsted in August 2024 and entered administration four months later, following a winding-up petition from lender Yad Solutions Limited which was owed £20,880.

Insolvency statements show Free To Learn owed more than £7 million to HMRC, former employees and other companies.

CEO Gabriel Gherscovic told administrators shortly after Free To Learn’s insolvency that the company first faced financial difficulties following an HMRC investigation over debts dating back to 2016. The Covid pandemic and energy crisis weakened it further.

The administrators’ most recent update said: “We would advise that investigations remain ongoing in relation to the potential breaches of The Insolvency Act 1986.

“It would not be appropriate to provide further details at this time, as doing so may prejudice any potential further litigation.”

BAJ ‘sanctioned’ by DfE

BAJ’s awarding body, the Scottish Qualifications Authority (SQA), suspended new starts at the provider until November last year over concerns about its financial stability, FE Week understands.

SQA and BAJ principal Matthew Williamson said this was due to a Department for Education sanction, although the department disputed this account when approached by FE Week for comment.

Williamson added: “The DfE wouldn’t allow students access to the funds book until we were able to assure them that we were under new management. Obviously they have to protect public funds.

“The hold has been removed and we have new students in place. We are currently recruiting for diplomas for future cohorts. As far as the SQA qualifications are concerned, we’re now business as usual.”

An SQA spokesperson said: “Following discussions with the centre, and confirmation that the Department for Education has lifted any sanctions against the British Academy of Jewellery, SQA removed the suspension on entries on November 18, 2025.”