Kids Company to be wound up

18 August 2015

The trustees have applied to have the (now closed) Kids Company wound up in the High Court. This means that there is no chance for the firm to be resurrected by the founder Camilla Batmanghelidjh. The company is being investigated by the charity commission for alleged financial mismanagement.  

The main purpose of the liquidation, in this instance, is to draw a line under the affair but it will also allow an investigation by the official receiver into the conduct of the directors and the financial management of the company. The official receiver has extensive powers to appropriate documents and interview the directors. They can also apply for disqualification proceedings - all this can be done at a low cost.  

Normally companies are wound up if they owe money or it is in the "public interest". Due to the furore around the firm, there was no possibility of the company continuing so on closure there would have been money owed to creditors.