Insolvency Service to investigate college that went bust owing £40m

Furious suppliers left with long list of unpaid invoices

The former leaders of Hadlow College in Kent will have some explaining to do after the Insolvency Service launched an investigation into the education centre after it went bust in May.

Ian Carrrote of ICSM credit said an enterprise like Hadlow College with its satellite sites, huge payroll and vast number of suppliers has caused companies and sole traders a massive headache. He said: “Many firms will supply colleges and schools because they know they will always get paid and are a reliable source of work. You don’t expect them to go into administration. Something went seriously wrong at the top which is why the Insolvency Service is investigating.”

Founded in 1919 Hadlow is the first college to go into educational administration owing around £40m to 300 organisations including the Department of Education and Barclays Bank. Former principal Paul Hannan and vice principal Mark Lumsdon-Taylor will be under the spotlight for their roles in the demise of the college as well as Theresa Bruton who was chair of the college board at the time. All three have quit with accountants BDO helping to keep the college working as normal for the students and staff with Graham Morley as the interim principal.

The Insolvency Service said if there was evidence of misconduct, and it’s in the public interest, they may pursue enforcement measures, such as director disqualification.

In the meantime, the creditors are furious as they have been left with unpaid invoices. For instance Albion Fencing and Construction are owed £12,000, electrical contracting firm Gilbert and Stamper have lost £22,000 and engineering and construction company Cambridge HOK are owed over £145,000.

Fraser Whieldon of FE Week magazine reported on the reaction of Vicky Harris of Albion Fencing and Construction. She summed up the feelings of many when she described the outgoing principal and his team as ‘b***ards’ for not paying their invoices and leaving her firm in a difficult situation.

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