Bristol-based Severn Four Credit Union has gone into administration putting jobs at risk but liquidator Chantrey Vellacott DFK has confirmed that the savings of 1,700 members will be protected.

Severn Four Credit Union Limited (SFCU) was placed into liquidation following an order of the High Court on 6 March with Kevin Murphy and Richard Toone from Chantrey Vellacott DFK appointed as liquidators.

SFCU is a not-for-profit financial cooperative which was open for membership for anyone living or working within the city of Bristol and South Gloucestershire.

It was owned and controlled by approximately 1,700 members with savings totalling around £450,000.

Murphy has stressed that all savers will be compensated in full.

'Every member of Severn Four Credit Union will get their money back in full, as they are protected by the Financial Services Compensation Scheme (FSCS),' he said.

'The FSCS has confirmed this process is automatic, so members do not need to act to recover their funds. People with less than £1,000 will receive a letter to get cash over the counter at the Post Office, while anyone with more than £1,000 will receive a cheque.'

The liquidation follows failed attempts to merge with the Bristol Credit Union. David Hutt, a director of SFCU said: 'We have been losing money for some time, and without any means of making up our deficit it is not possible for us to continue trading.

'The losses were caused partly by a lack of funding. Our biggest problem has been a high level of bad debt, the result of more and more members defaulting on their loan repayments.

'We hoped to secure the future for our members by merging with Bristol Credit Union. However, after waiting for five months Bristol Credit Union rejected our merger proposal. With no time to find other sources of funding we have no alternative but to close.'

Two members of staff will be made redundant in the process.