A Warrington-based provider of apprenticeship training services that has received £100m in public funding has been sold out of administration, securing 300 jobs.
Elmfield Training Limited entered administration in October, with Dan Smith, Dominic Wong, and Paul Meadows of Deloitte appointed as joint administrators.
On appointment, the majority of the company’s business and assets, excluding a training contract with Morrisons, was sold to EQL Solutions Ltd, a subsidiary of CareTech Holdings PLC.
Smith said: “The sale ends a period of great uncertainty for employees and ensures disruption to learners is minimised.
“Elmfield was historically profitable, but incurred a loss before tax of £4.6m in 2012. Whilst underlying profitability was restored in 2013, the company’s cash position continued to worsen.
“Following the successful sale to EQL Solutions Limited, the core business and all the employees can move forward.”
Elmfield Training was the subject of a BBC investigation earlier this year, following allegations the company received money for training courses that employees had declined to take.
In July the company received the lowest grade available in an Ofsted inspection for its training programme for supermarket chain Morrisons, a contract which has generated over £60m for Elmfield since 2010.
The Morrisons contract is “likely to be taken over by another provider”, along with approximately 50 additional staff associated with this contract.
Elmfield Training is also the on-going subject of an investigation by Skills Funding Agency (SFA).