Defunct fundraising agency faced claims of more than £5m, report shows

Charity

The collapsed fundraising agency Home Fundraising is being liquidated, facing claims totalling more than £5m.

The liquidator’s report, published on the Companies House website this week, reveals it has received claims totaling £4.8m from 56 unsecured creditors, while a further 92 claims have yet to be received for sums totalling more than £300,000.

The unsecured creditors are expected to receive nothing, the report states. 

The door-to-door fundraising agency went into voluntary administration in March 2019, having entered into a Company Voluntary Arrangement in May the previous year.

The CVA – a deal that allows companies to pay creditors over an extended period of time while still trading – pledged to pay off more than £1.5m worth of debt, including £1.3m owed to HM Revenue & Customs.

But in November 2019 administrators estimated there were about 147 unsecured creditor claims against the firm, totalling £3.8m.

Home Fundraising’s 1,111 former employees are still owed about £239,000, as stated in the earlier report.

They should receive almost 90 per cent of the sums owed to them, the report indicates.

At the time the company went into administration, joint managing director Dominic Will blamed the costs of downscaling the business to adapt to a changing marketplace.

The report says the liquidation process is due to be completed in 12 months’ time, depending on the outcome of several employment tribunals, the distribution of dividends to creditors, the recovery of outstanding book debt and the conclusion of the rates review.

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