LearnDirect, the adult learning provider and apprenticeships providers faces an uncertain future after it failed in its High Court bid to suppress a damning Ofsted report where it was labelled totally inadequate.
In a statement LearnDirect said; “In particular, we felt that the sample size of 0.6% used by Ofsted to arrive at its conclusions is not sufficient to judge the quality of Learndirect’s training. We are therefore extremely disappointed with the verdict.”
LearnDirect relies heavily on government funding of £10m a year and it is usual that funding is withdrawn if there is a damning Oftsed report. If this funding dried up then it is likely that the business would need to go into administration and it is likely that applicants will be put off by the report.
The provider has also taken on a lot of debt over the last few years whilst profits have gone down from £10m in 2012 to £1.6m in 2015
LearnDirect has consulted with is 1,600 staff on redundancies as it has already suffered from government spending cuts that has affected all service providers. However, it also said that it has enough funds and a solid enough business to weather the storm.
It is not unusual for training providers to go bust when rules change, or funding dries up. In the event of LearnDirect becoming insolvent other training colleges have said that they will offer places to students and employers will switch to other providers.
KSA Group does have experience of helping colleges and schools so if you are involved in training and struggling then get in touch