Troubled training firm Carter & Carter has filed for administration after it failed to reach an agreement with its lenders on additional funding.
The company previously announced in February, that it was in negotiations with three banks regarding restructuring its finances. However, Barclays, HBOS and Lloyds TSB Group informed Carter & Carter that such an option was not a viable and negotiations were subsequently terminated.
The group has issued three profit warnings since the death of founder and chief executive Phillip Carter in a helicopter crash in May last year.
Rodney Westhead, the company’s chairman and acting chief executive, said in a statement: “Following the termination of those negotiations, the board has considered alternative options available to it and has concluded that no viable alternative option is available to meet its cash needs in the short term.”
Westhead said he had instructed the company’s lawyers to file a notice of intention to appoint administrators, putting into jeopardy, the futures of 2,000 staff at the Nottingham-based firm.
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Last year, Carter & Carter announced it had won contracts for government’s flagship training initiative, Train To Gain, worth £6.6m for the whole of 2006-07.
The company said it would work closely with the administrators, the Learning and Skills Council and the Department for Work and Pensions to minimise the effect on learners, clients and employees.
