Chair Regrets Merger and College Is at a ‘High Risk of Insolvency’

St Helens College is at “high risk of insolvency” without action to mitigate its financial position following an underfunded merger, according to an FE Commissioner report. The college did not properly predict how much money it would need for a 2017 merger with Knowsley College to form the SK Colleges Group, which was supported by £14.1 million from the ESFA’s restructuring facility, FE Week reported. As a consequence of which, FE Commissioner Richard Atkins wrote in a report published today, the current underlying position of the college is “not sustainable”. “The college and the board of governors have accepted that the income targets used in the original restructuring facility application were too optimistic and have stated that they would not have proceeded with the merger if they had fully understood the impact on overall financial and quality performance,” he continues. Read more