Balnacraig School: Liquidation for one of Scotland's oldest charities

The school is a residential facility for children and young people who are not able to cope with mainstream education because of social, emotional and behavioural difficulties.

It has previously stated that a lack of referrals had led to a decision to stop its care services in December.

Four of the 28 employees in a mix of care, education, finance, admin and maintenance roles will be made immediately redundant. The remaining staff will be retained until their services are no longer needed.

Now the charity has appointed Shona Campbell at Henderson Loggie as provisional liquidator.

David Law, chairman of the board of trustees at Balnacraig School, said: “It is with great sadness and regret that we made the decision to seek liquidation.

"The key factor that determined the decision to stop providing care was a lack of referrals which suggested that there is no longer a need for the sort of service we provide. Our hope however, had been that we would to be able to continue as a charity for young people. Our ability to continue was linked to the sale of the properties at Fairmount Terrace.

“Unfortunately, these sales have fallen through, and we have been left with no choice, given we are no longer receiving referrals, but to seek liquidation.

"Fortunately, our plans for our young people to move on are well advanced and the decision to seek liquidation will have no effect on these plans, however unfortunately, staff will be directly affected.

"We have valued the support and guidance Shona Campbell has provided to formulate a clear strategy that has ensured the needs of the young people in our care and our employees remain of utmost importance.”

Before it close, it had been offering 52 week placements for young people with what it described as a "variety of long-term barriers in their lives as a result of many background factors" in Perth and houses in the city as well as Blairgowrie and Errol.

Emergency placements were also available for up to a money at a safebase house in Pitlochry.

It put its main building up for sale in November, 2019 after more than 70 years of use to finance what it called a more modern care model.

The B-listed property originally cost the trustees just £5,000 and while no price was put on the listing at the time it was then understood selling the main Fairmount Terrace building would free capital to allow the school to buy several smaller properties, in addition to those they already owned.

Balnacraig was established in Perth in the wake of the industrial revolution in 1843 to help girls left abandoned and homeless because of the squalor and over-crowding in cities and towns.

It had its roots in the first residential industrial school in Scotland, the Perth Ladies House of Refuge, which was formed in 1843.

Mergers with the Fechney Industrial School for Boys and Wellshill school resulted in a new trust buying the mansion in 1948.

Since 1950 it has operated from a large listed baronial mansion at Fairmount Terrace in Perth, which was put up for sale in 2019 with the aim of opening more houses suitable for small group living better able to meet the needs of the young people using its services.

Shona Campbell, business recovery and insolvency partner at Henderson Loggie, said: “Efforts were made by the leadership team at Balnacraig School to adapt its services to meet the changing needs of the young people it was set up to support. It has been a privilege to work with trustees to formulate a strategy that allows the charity to meet its obligations.

“Provision has been made to provide continuity of care and we will work with the relevant authorities to ensure a smooth transition. We are very grateful to staff for their ongoing support, and we will work with them to ensure they receive their employment entitlements from the government.”