College-owned company collapses

A college-owned company that ran computer training programmes has collapsed after "quality and performance concerns" with its Government contract.

The North West London Colleges Consortium (NWLCC) had provided award-winning Learndirect courses since 1999 from Crescent House at The College of North West London (CNWL) and later Dexion House, Empire Way, Wembley, but was put in administration late last year.

Founding colleges Harrow, Stanmore, St Dominic's Sixth Form and The College of North West London took their share of the firm's modest profits, and so the only financial blow to them is believed to be the absence of future income.

In a statement, NWLCC's board of directors said: "It is very regrettable that, after years of successful trading and despite the high quality of the company's training provision, NWLCC encountered recent difficulty in covering the operating costs associated with the delivery of its publicly funded programmes.

"Other similar companies have faced the same challenges. NWLCC staff worked hard to make sure that, wherever possible, students completed their qualifications before the closure of the company."

Stanmore College principal Jacqui Mace, who was chairwoman of the board, said the firm's downfall was in part due to a delay at government body University for Industry (UfI) over whether to renew the company's Learndirect contract.

She declined to go into more detail, saying only: "They held back on the number of centres there were, and changed the system from having a hub which managed a contract for a wide area.

"That caused quite a few problems. There was uncertainty about the future and the biggest issue was cash flow. NWLCC wasn't badly run - it was well run."

But a spokeswoman for the UfI said: "UfI terminated NWLCC's contract to deliver Learndirect in July 2008. NWLCC's contract was up for renewal in July 2008, therefore there was no delay in the timing of the decision.

"The decision was taken by UfI not to renew NWLCC's contract because of concerns about performance and the quality of the learning being delivered by the organisation. All providers are made fully aware of the performance and quality standards required before signing contracts."