On 3 June 2024, Noble Tree Foundation (“the Charity”), a company limited by guarantee and a charity, entered into administration with John Dickinson and Joseph Colley of CBW Recovery LLP being appointed as joint administrators.
Founded in 2003, the Charity is a social housing operator with over 220 properties across England comprising 470 units, providing homes and support to over 850 ex-service personnel, vulnerable adults and asylum seekers.
In 2019, the Charity implemented a new growth plan in line with its goal to help people nationwide.
The charity committed to taking on new leases. However, considerable strain on cashflow resulted due to the required capital outlay in bringing some of the properties up to serviceable condition which resulted in rent being withheld, leading to disputes over the arrears and compensation for the costs of refurbishment. Notwithstanding the lost income. The charity estimates the cost of these repairs to be in excess of £1,000,000.
The Charity was also subjected to a statutory inquiry from the Charity Commission which resulted in the appointment of an Interim Manager.
Following the presentation of a winding-up petition from one of the landlords, the Trustees, being conscious of their fiduciary duties, took the decision to approach CBW Recovery to advise the Charity which resulted in the application to place the company into administration.
John Dickinson, an Insolvency Partner at CBW Recovery LLP, said: “We are continuing to trade the Charity whilst we work with the landlords to negotiate exits from leases and, hopefully, to then make a distribution to the unsecured creditors. We have previous experience in these situations and from initial discussions with the landlords, we are confident that a positive outcome can be reached.
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.