Codeclan: Crowdfunder launched to help students after tech training academy goes into administration

A student said the collapse of the tech training company is a ‘complete shock’.
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A crowdfunder has been launched to support students training at a failed digital skills academy to complete their studies.

Edinburgh-based Codeclan called in administrators on Friday, after struggling to find jobs for its students. All 57 staff were made redundant while students are left unable to complete their courses.

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The Scottish-Government backed company which was formed in 2015 to drive digital technologies ceased trading citing "challenging market conditions".

Edinburgh-based Codeclan called in administratorsEdinburgh-based Codeclan called in administrators
Edinburgh-based Codeclan called in administrators

More than £14,700 has been raised in just two days, after an Edinburgh student setting up a £50,000 crowdfunding campaign to help stranded students finish their courses.

Stuart Ure, 34, quit his job and invested his savings into a CodeClan course. He said: "It was a complete shock for everyone and our hearts go out to every single person affected. The loss of this community is a huge loss to Scotland. We have a real

need in our economy for people with this skillset, which is why CodeClan was set up in the first place.

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“I left my job, a scary thing to do at 34 years old, and put all my savings into the CodeClan Professional Software Development course; a long term investment into my future. I felt confident that CodeClan was the right company for me to learn with - Scotland-wide, government-backed, designed to fill a skills shortage; a good bet on all counts.

“I am 5 weeks in to a 16 week bootcamp. On Thursday, the day before the news broke, we presented our first projects, and as we walked to the pub afterwards to celebrate, the air was full of excitement and promise. Little did we know, this would all come crashing down on us less than 24 hours later.”

Student Lesley Duffy said: “Staff and students have been blindsided by this, with no notice. I'm disabled with autism and sensory issues that make studying in a traditional environment very difficult. The remote option having content delivered by a live person was a great option for someone like me. The instructors and staff have been so supportive. I took redundancy a few months ago from a charity due to reduced government funding, now here too, staff and students are wondering why it seems like the government hasn't been able to support CodeClan at this time - a company helping plug the skills gap.”

Funds raised will be used to pay instructors who are now out of work to ensure they can continue to support students to finish their courses. Any additional funds would pay for a workspace.

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Liquidators Craig Morrison and Scott Milne, from the Edinburgh and Glasgow offices of Quantuma, said: “Unfortunately, current market conditions have hit the turnover, with the business placement side of the business once again suffering. Attempts to replace this income have failed and ultimately, a lack of cash flow has resulted in the company being placed in liquidation and immediately ceasing to trade. All 57 employees have now been made redundant.”

A statement on CodeClan’s website read: “It is with extremely heavy hearts that we announce that CodeClan has gone into liquidation and will cease all operations as of 4 August 2023.

“Sadly, that means all our staff have been made redundant and will no longer represent CodeClan.”

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