Circle Housing and Support CIO - Case Update

The liquidation of Essex-based social housing charity Circle Housing and Support CIO has ended not only in creditor claims being paid in full, but also a £250,000 donation being made to three charities which alleviate homelessness and provide social care to vulnerable individuals.

John Dickinson, who sadly passed away last month, and Joseph Colley of CBW Recovery were appointed joint administrators in July 2022 after the charity’s trustees determined that leases for certain locations were onerous and that, without a restructuring of the portfolio, the charity would be unable to pay its ongoing liabilities. At the time, the charity held 141 properties across southeast and northeast England, providing homes and support to approximately 450 vulnerable adults, ex-service personnel and asylum seekers.

Following extensive negotiations with the head landlord Home REIT plc, the administrators were successful in assigning all property leases to One (Housing & Support) CIC, an alternative operator, ensuring that the vulnerable residents had their homes protected and ongoing support was maintained. As part of the deal, the administrators were able to ringfence funds from reverse premiums to pay all creditors of Circle in full (including statutory interest) and settle the costs of the process. Crucially, John Dickinson insisted that £250,000 also be ringfenced for Circle in a new, scaled-down operation or for donation to other charities with the same or similar charitable objectives to Circle.

Joseph Colley and John Dickinson were subsequently appointed liquidators of Circle in January 2023 to allow creditors to be paid and the surplus to be distributed. Following discussions with the Charity Commission and the Trustees, donations were ultimately made to the Shenehom Housing Association (£50,000), Hopestead (£100,000) and YMCA Essex (£100,000).

The liquidators were assisted by Birkett Long, Edwin Coe, Birketts, Russell-Cooke and Bates Wells.