4Children entered financial difficulties earlier this year due to funding pressures and the loss of key contracts.

The administrators from Smith & Williamson have worked to complete a number of transactions ensuring that the services provided by 4Children continue.

Around 60% of the charity’s activities as well as 750 employees have been moved to Action for Children, a different children’s charity.

Nearly all of the services provided and another 200 employees have been transferred to local authorities and other providers.

However, a small number of sites are to be closed and the 65 employees that work at head office will be made redundant.

Overall, 1000 employees, out of 1050 plus employed by 4Children, are being transferred to new employers.

Adam Stephens, lead joint administrator of 4Children, said: ‘Smith & Williamson have been assisting 4Children for the last few months in identifying the various financial options available to it. It was apparent that the best option was to negotiate a transfer of the services to another not for profit organisation. In the end, this has involved far more than just a transfer to Action for Children.” 

‘Overall, this has been a very significant task, including negotiating with over 30 different parties, each requiring different terms. These have all been undertaken concurrently with the aim of all transfers occurring at the same time. As a result almost all of 4Children’s circa 1,050 employees have a new employer.

‘The appointment as joint administrators has enabled us to give the small number of former employees, who have regrettably been made redundant, support in making claims to the National Insurance Fund.

‘We are anticipating that thousands of children will be able to continue to access the same services and, as such, the team is working very closely with Action for Children and all local providers to ensure as smooth a transfer of services as possible.’