Shona Campbell

Balnacraig has cared for around 2000 children since the charity was established in Perth in the wake of the industrial revolution in 1843 to help girls left abandoned and homeless because of the squalor and overcrowding in cities and towns.

Since 1950 it has operated from a large listed baronial mansion at Fairmount Terrace in Perth, which was put up for sale in 2019 with the aim of opening more houses suitable for small group living better able to meet the needs of the young people using its services.

David Law, chair of the board of trustees at Balnacraig School, said: “It is with great sadness and regret that we made the decision to seek liquidation. The key factor that determined the decision to stop providing care was a lack of referrals which suggested that there is no longer a need for the sort of service we provide. Our hope, however, had been that we would be able to continue as a charity for young people. Our ability to continue was linked to the sale of the properties at Fairmount Terrace.

“Unfortunately, these sales have fallen through, and we have been left with no choice, given we are no longer receiving referrals, but to seek liquidation. Fortunately, our plans for our young people to move on are well advanced and the decision to seek liquidation will have no effect on these plans, however unfortunately, staff will be directly affected. We have valued the support and guidance Shona Campbell has provided to formulate a clear strategy that has ensured the needs of the young people in our care and our employees remain of utmost importance.”

Shona Campbell, business recovery and insolvency partner at Henderson Loggie, added: “Efforts were made by the leadership team at Balnacraig School to adapt its services to meet the changing needs of the young people it was set up to support. It has been a privilege to work with trustees to formulate a strategy that allows the charity to meet its obligations.

“Provision has been made to provide continuity of care and we will work with the relevant authorities to ensure a smooth transition. We are very grateful to staff for their ongoing support, and we will work with them to ensure they receive their employment entitlements from the government.”

Balnacraig School has 28 employees in a mix of care, education, finance, admin and maintenance roles. There will be four immediate redundancies, and the remaining staff will be retained until their services are no longer needed.