A Leicestershire college group is being propped up with emergency funding after the FE Commissioner flagged an insolvency risk, as governors admit they “took their eye off the ball” following a “turbulent” post-merger period.
The SMB Group was handed a government warning notice last July after “serious cash flow pressures” came to light. FE Commissioner Shelagh Legrave is now deploying her team of national leaders of FE and governance to help its recovery.
Staff restructuring is also underway, although it is not clear how many jobs are at risk.
The SMB Group was formed shortly before the Covid-19 pandemic in 2020 through the joining of Brooksby Melton College and Stephenson College. Quality at both colleges pre-merger was judged by Ofsted as ‘good’ and the financial health of the newly merged college was also good.
