July 7, 2022

Circle Housing and Support, CIO, placed into administration, CBW appointed as administrators

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On 6th July 2022, Circle Housing and Support (“the Charity”), a charitable incorporated organisation, entered into administration with John Dickinson and Joseph Colley of CBW Recovery LLP (formerly Carter Backer Winter LLP) being appointed as joint administrators.

Founded in 2009 and based in Essex, the Charity is a social housing operator with over 150 properties across southeast and northeast England, providing homes and support to hundreds of vulnerable adults and asylum seekers.

In its previous form as a Community Investment Company, the Charity had expanded its property portfolio in 2020, entering 20-year leases for 150 properties in return for contributions of over £3million from the landlords. Following a change in the Charity’s management and after seeking advice, it was determined that leases for certain locations are onerous and that without a restructuring of the portfolio, the Charity would be unable to pay its ongoing liabilities in the not-too-distant future. Consequently, the Trustees, being conscious of their fiduciary duties, took the decision to approach CBW to put the Charity into administration.

John Dickinson, Head of Transactional Services and Corporate Restructuring and Insolvency Partner, said: “We are continuing to trade the Charity whilst we work with the landlords to negotiate exits from those onerous leases and, hopefully, to then solvently hand back the Charity to its trustees.

Our absolute priority is maintaining the welfare and living conditions of the Charity’s vulnerable tenants. We are working alongside the Charity’s own staff and property management agents to deliver this. We thank the staff for their ongoing assistance and commitment to the Charity in delivering its objectives.”

Further updates regarding the administration process will be provided in due course.