Jobs lost as liquidator appointed at Envrolink NW

ENVIROLINK Northwest, the not-for-profit organisation set up to drive the low carbon agenda in the region, has been placed into liquidation and all 19 staff have been made redundant.

The organisation, which was based in Warrington, was founded in 2001. Its demise comes after the majority of its funding was lost following the closure of the North West Development Agency and subsequent public sector spending cuts.

At its height, in 2010, Envirolink Northwest had 90 staff and a turnover of £6m.

Bev Budsworth from Manchester-based business recovery business, The Business Debt Advisor, has been appointed as liquidator.

The business was first started in 1999 by business leaders from the environmental sector. Operating from offices in Birchwood, it was funded by the  NWDA, the European Regional Development Fund, North West local authorities and industry.

It fell into cash flow difficulties following successive funding cuts and the early closure of projects, which were exacerbated by the ERDF team moving from NWDA control to the control of the Department for Communities and Local Government (DCLG) in April 2011.

Bev Budsworth, commented: “It’s a really unfortunate situation that Envirolink Northwest found itself in. For a limited company that helped support so many businesses and created jobs in the region, it ultimately failed because it became increasingly difficult to get sign-off and payment on European funded projects. Severe funding cuts also drastically reduced turnover causing cash flow issues.

“What’s worse is that 19 extremely experienced and loyal staff will lose their jobs. Saving the business just wasn’t possible as there were very few remaining projects and no sustainable business to sell.

“Envirolink has suffered like many others in the ‘not for profit’ sector with government cutbacks affecting many worthy projects.”
 

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