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Doors close at debt-hit CAB
A DEBT-RIDDEN Citizen’s Advice Bureau (CAB) has been shut down and its staff made redundant.
The closure of the office in Durham Road, Finsbury Park, came after it buckled under the financial weight of owing tens of thousands of pounds and was forced in to liquidation.
The CAB helps people resolve their financial, legal and other problems by providing information free-of-charge.
But after it moved from Upper Street to Durham Road, the overheads and rent hikes became unsustainable.
The bureau’s 2005 statement of accounts filed with the Charity Commission showed it already had a deficit that year of £17,038.
The turn around in fortunes follows a buoyant 2004 where the CAB had a surplus of £70,245.
Islington’s CAB’s 2006 statement of accounts to the commission is now two months overdue but sources says it has slipped even further in to the red.
A CAB staff member said: “We had a situation where the bureau got in to debt and it was a debt that was particularly hard to catch up with.”
But bosses are refusing to divulge any more information about how the bureau managed to slip into so much debt until the investigation by creditors is completed in two weeks.
Now 14 paid staff at the charity face redundancy and the bureau is liquidating its assets.
David Vandivier, chairman of Islington CAB, said: “This is a very sad situation both for those who use the CAB service and our extremely dedicated staff. We would ask that clients bear with us as we endeavour to make sure they are still supported via other advice agencies or neighbouring CAB offices.”
Anyone seeking advice from Islington CAB is being turned away at the door and referred to either the Islington Law Centre or a CAB in another borough.
The national CAB spokeswoman said: “Citizens Advice has been aware of difficulties at the (Islington) bureau and has been working with them to resolve those issues. Unfortunately these issues were not resolved, which has led to the bureau ceasing trading, but we will continue to work with them to make sure existing and new clients get appropriate support.”
Councillor Terry Stacy, deputy leader of Islington Council, said: “This is a serious matter and I understand that the decision to close this CAB was taken after every effort had been made to keep it open.”
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