Seventy-two jobs have been axed as the Via Partnership, the training firm owned and run by three councils, has gone into administration.
The Via Partnership provided educational programmes, careers advice, work experience placements, CV workshops, professional training and qualifications and apprenticeship programmes.
However, Ofsted inspectors recently handed out the lowest rating of 'inadequate', marked down from the previous assessment of 'good'.
The councils could now lose as much as £1m of invested money between them.
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