Huge training company goes into administration

by L&D26 May 2017
Careers Australia, one of Australia's largest vocational education institutions, has been placed into voluntary administration with up to 1,000 employees stood down immediately without pay.
 
Last night, a letter was sent from the administrators to all staff about the decision.
 
"We do not currently have sufficient funds available to meet payroll and other costs which would allow us to continue trading the Group on a 'business as usual' basis," the letter read.
 
Students were sent also a text message at 10:45pm which read, "All activities of Careers Australia Group are suspended. No classes, no workplaces effective immediately. Further information will be provided."
 
Careers Australia released a statement about the decision.
 
"Regrettably, due to a number of changes in the education sector, we have had to appoint voluntary administrators.
 
"We are very disappointed that the business has had to make this decision, particularly for the 1,000 staff and 15,000 students affected" the statement said.
 

COMMENTS

  • by ljh 29/05/2017 5:39:45 PM

    "Regrettably, due to a number of changes in the education sector, we have had to appoint voluntary administrators. - I am curious, to understand, what specifically, these changes were , that led to this drastic situation? The Australian Government had announced a range of reforms to improve the higher education sector., while the funding to Universities looks like it is going to be underfunded ? CA relied on government for 90% of its revenue.. and " a training college at the centre of a multimillion-dollar government loan scandal last year paid out $40 million in dividends to its shareholders less than 18 months before it went bust." So was this really due to the changes in the education sector or something else ? And this is a genuine question, I ask .