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Liquidators called in to One Plus | |
(about 3 hours later) | |
Childcare provider One Plus has confirmed that it is going into liquidation. | Childcare provider One Plus has confirmed that it is going into liquidation. |
The Glasgow company, one of Scotland's biggest after-school and nursery providers, said it had tried its utmost to keep the business running. | The Glasgow company, one of Scotland's biggest after-school and nursery providers, said it had tried its utmost to keep the business running. |
The Scottish Executive recently turned down a £2m rescue package for the firm which employs more than 550 people. | The Scottish Executive recently turned down a £2m rescue package for the firm which employs more than 550 people. |
The firm, whose largest customer is Glasgow City Council, said closure would cost the Scottish economy £10m. | The firm, whose largest customer is Glasgow City Council, said closure would cost the Scottish economy £10m. |
One Plus assists more than 1,000 families a year across the west of Scotland. | One Plus assists more than 1,000 families a year across the west of Scotland. |
The One Plus board has been advised by accountants and lawyers that they have no option but to place the company into liquidation One Plus spokeswoman | The One Plus board has been advised by accountants and lawyers that they have no option but to place the company into liquidation One Plus spokeswoman |
A company spokeswoman said: "The board, senior managers and external consultants have tried their utmost to keep the business running. | A company spokeswoman said: "The board, senior managers and external consultants have tried their utmost to keep the business running. |
"Unfortunately these efforts have proved unsuccessful. The executive has turned down a £2m rescue package. | "Unfortunately these efforts have proved unsuccessful. The executive has turned down a £2m rescue package. |
"The One Plus board has been advised by accountants and lawyers that they have no option but to place the company into liquidation." | "The One Plus board has been advised by accountants and lawyers that they have no option but to place the company into liquidation." |
Scottish Executive ministers had dismissed the refinancing bid as unworkable and demanded to know how financial difficulties had been allowed to develop. | Scottish Executive ministers had dismissed the refinancing bid as unworkable and demanded to know how financial difficulties had been allowed to develop. |
The organisation costs about £11m a year to run with more than half the money coming from public funds. | The organisation costs about £11m a year to run with more than half the money coming from public funds. |
'Breathing space' | 'Breathing space' |
Executive officials and local authorities who work with One Plus have been developing contingency measures for families and children affected by any potential care disruption. | Executive officials and local authorities who work with One Plus have been developing contingency measures for families and children affected by any potential care disruption. |
A spokesman for the Scottish Executive said: ¿Earlier this month One Plus put forward a proposal to refinance the company. | |
"But the unanimous view of the local authorities was that this just did not stand up. | "But the unanimous view of the local authorities was that this just did not stand up. |
"The executive and local authorities felt the right thing to do was to focus on ensuring continuity of services through other providers. | "The executive and local authorities felt the right thing to do was to focus on ensuring continuity of services through other providers. |
"We have worked and are continuing to work very hard with our local authority partners to ensure that key services to vulnerable people are maintained. That is our number one priority and has been all along." | "We have worked and are continuing to work very hard with our local authority partners to ensure that key services to vulnerable people are maintained. That is our number one priority and has been all along." |
There is a great amount of anger and disappointment from the workers Dan SharpeTGWU | There is a great amount of anger and disappointment from the workers Dan SharpeTGWU |
Glasgow City Council, one of One Plus's biggest customers, has already provided more than £700,000 of financial support in order to give the organisation "some breathing space". | Glasgow City Council, one of One Plus's biggest customers, has already provided more than £700,000 of financial support in order to give the organisation "some breathing space". |
A spokesman for Glasgow City Council said: "We have worked extremely hard to safeguard all nursery and out of school care places in Glasgow provided by One Plus. | A spokesman for Glasgow City Council said: "We have worked extremely hard to safeguard all nursery and out of school care places in Glasgow provided by One Plus. |
"We are delighted that other organisations, both private and voluntary, have offered assistance so quickly and we're confident that the vast majority of young people affected will face little or no service disruption. | "We are delighted that other organisations, both private and voluntary, have offered assistance so quickly and we're confident that the vast majority of young people affected will face little or no service disruption. |
"In most cases, care will be provided on the same site. We will notify parents of any alternative arrangements as soon as possible." | "In most cases, care will be provided on the same site. We will notify parents of any alternative arrangements as soon as possible." |
'Bad news' | 'Bad news' |
Dan Sharpe, regional industrial organiser for the TGWU union, said: "There is a great amount of anger and disappointment from the workers. | Dan Sharpe, regional industrial organiser for the TGWU union, said: "There is a great amount of anger and disappointment from the workers. |
"There was a lack of courtesy towards staff who yet again found out the bad news from the press, rather than the employer. | "There was a lack of courtesy towards staff who yet again found out the bad news from the press, rather than the employer. |
"This has caused a lot of fear and resentment." | "This has caused a lot of fear and resentment." |
Fears over One Plus's future come just over a month after one of its subsidiary businesses, childcare provider Kid Care, went into liquidation with the loss of 75 jobs. | Fears over One Plus's future come just over a month after one of its subsidiary businesses, childcare provider Kid Care, went into liquidation with the loss of 75 jobs. |
Kid Care provided crèche facilities for 300 children, including one facility at the Scottish Parliament, but went bust with immediate effect at the beginning of December. | Kid Care provided crèche facilities for 300 children, including one facility at the Scottish Parliament, but went bust with immediate effect at the beginning of December. |