Insider Media Limited

Birmingham-based BXL Services is seeking a buyer after it collapsed into administration as government spending cuts caused contract income to decline.

Tony Barrell, Matthew Hammond and Ian Oakley-Smith of PwC were appointed joint administrators of the charity on 23 January 2012.

BXL, which has a £1m turnover and employs 26 staff, has a long history in the education sector supporting 20,000 young people in the West Midlands every year.

Among the services it provides are: helping young people get ready for employment; training for teachers; work experience support; and corporate responsibility support for companies.

BXL chief executive John Ling said: "This is a very sad day for the West Midlands and is yet another blow to young people who potentially will no longer have access to essential work-placement opportunities, work-related learning and links with the region's business community.

"We have been battling against a substantial pension deficit for some time, one that we unfortunately inherited as part of the local authorities of Birmingham and Solihull taking over the Connexions contract in 2008.

"The board and our management team have explored every opportunity to find a solution to this problem, but all avenues have now been closed.

"Working with the administrators, we have identified a number of local organisations who have shown an interest in acquiring the operations of BXL. We are still hopeful for a successful solution for the region."

Tony Barrell, joint administrator and director at PwC in the Midlands, added: "The charity provides a number of services predominantly to the education sector and has suffered a dramatic decline in contract income since 2008 with its funded programmes diminished due primarily to the cuts in government spending.

"As a result of the decline in income and significant pension liabilities within the charity, the trustees concluded that they were unable to continue and have placed the charity into administration."