The Fees Company, an Edinburgh-based business that enables parents to spread the payments of private schools fees, has gone into administration.
The company makes the termly payments to schools and receives monthly instalments from parents, which also includes a monthly administration fee.
The Edinburgh-based firm's collapse into administration may render parents thousands of pounds out of pocket as they had already paid two month's worth of fees towards the autumn term. The Fees Company had not given the collected funds to the schools, leaving parents potentially having to pay twice, according to KPMG, the appointed administrator.
About 238 pupils at the 70 UK schools that The Fees Company provided its service to will have been hit. The company also offered a similar service to 4,500 golfers in 64 golf clubs across the UK.
Numerous attempts to secure additional funding for the business failed, and a hole in the balance sheet was also discovered. This led the directors to conclude that the company could not continue to trade. KPMG administrator Blair Nimmo believes there are no obvious reasons for the company's present situation.
The individual schools understand the affected parents' situation, and are attempting to find ways to assist them. Collection of the school fees is crucial, however, in order that staff get paid and for the schools to run, said Alice Reeve, a solicitor with Rickerbys in Cheltenham, who has been advising the affected educational establishments.
