The Board of Skills for Logistics has decided to close the business and is considering placing the company into administration, blaming pressure to fund a significant pension deficit for its financial problems.
Over the past few years, public funding for the organisation has been reducing. In a statement, it said that now being required to become 100 per cent funded through employer projects, it “has struggled to both replace revenue streams and continue to fund pension recovery payments”.
It highlighted pressure placed on the business by the trustees of the pension scheme, which SfL joined following its initial set-up in 2003.
“Like many similar organisations, the significant pension deficit and subsequent on-going recovery payments has placed extreme pressure on a smaller SfL business in a rapidly changing economic environment.”
The statement said: “The organisation and its business plan have remained reasonably strong, however given the reduced activity level in 2015 and obligations to the pension scheme (particularly in the light a new approach by its trustees), the board felt it would be better to seek alternative options for the continuing industry skills projects.
“The board is therefore appointing an administrator and starting to work with our stakeholders to find a natural home for any on-going projects.”