March 14, 2025

Liquidators of Circle Housing and Support CIO make £250,000 donation to three homeless and social care charities

Donations will provide support for many vulnerable and homeless people

The liquidators of Circle Housing and Support CIO (“Circle”), CBW Recovery LLP, have made donations totalling £250,000 to three charities who alleviate homelessness and provide social care to vulnerable individuals – Shenehom Housing Association Ltd, Hopestead and YMCA Essex. 

Circle was a social housing charity based in Essex and held 141 properties across southeast and northeast England, providing homes and support to hundreds of vulnerable adults, ex-service personnel and asylum seekers.  In July 2022, Circle appointed Joseph Colley and John Dickinson of CBW Recovery LLP as administrators after it was determined that the charity was insolvent and would be unable to pay its ongoing liabilities due to onerous head leases.

Following extensive negotiations with the head landlord, the administrators were successful in assigning all property leases to an alternative operator ensuring that the vulnerable residents had their homes protected and ongoing support was maintained.  As part of the deal, the administrators were able to ringfence funds from reverse premiums to pay all creditors of Circle in full (including statutory interest) and settle the costs of the process.  Crucially, John Dickinson insisted that £250,000 also be ringfenced for Circle in a new, scaled-down operation or for donation to other charities with the same or similar charitable objectives to Circle.

Joseph Colley and John Dickinson were subsequently appointed liquidators of Circle in January 2023 to allow creditors to be paid and the surplus to be distributed.  Following discussions with the Charity Commission and the Trustees, it was resolved on 14th February 2025 that donations be made to Shenehom Housing Association Ltd (£50,000), Hopestead (£100,000) and YMCA Essex (£100,000), which have now been made.

Lucy Parish of Hopestead has said “Thank you to everyone for this wonderful donation. At Hopestead, we believe in not just giving people a safe place to live but tackling the causes of homelessness and building long term, sustainable solutions. This donation will support our ‘Hope at Home’ project, which provides essential furniture, white goods, and flooring to people moving into a Flagship property from a route of homelessness, so that people are empowered to break the cycle of homelessness- Because everyone deserves a place to call home.”

Joseph Colley, Insolvency Partner at CBW Recovery LLP, said:

“We are delighted to be able to donate £250,000 to three charities that will make a difference to so many individuals experiencing homelessness and hardship.  It is rare to have surplus funds after an insolvency process and the case of Circle Housing and Support is a great case study of how the Insolvency Act 1986 can be utilised for effective negotiations to enhance returns to creditors and shareholders/beneficiaries.

A special mention should go to my fellow administrator & liquidator, John Dickinson, who sadly passed away on 4th February 2025.  John’s creativity and strong negotiating stance with the landlords made it possible for the charitable donations to be made.

We would also like to thank our solicitors, Birkett Long LLP, for their efforts and assistance in securing the assignment of the leases and Edwin Coe LLP for assisting with the statutory investigations.  Also, thanks to Birketts LLP, Russell-Cooke Solicitors and Bates Wells Solicitors for assisting in sourcing the recipient charities.” 

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