Students to complete course after all as CodeClan assets sold to CodeBase

04 September 2023 3 min. read

Joint provisional liquidators from business advisory firm Quantuma have delivered the sale of intellectual property of Scotland-based digital training provider CodeClan to incubator Codebase. The move enables some 80 students to complete their studies, having resorted to crowdfunding for help just days before.

Established in 2015 with Scottish Government seed funding, CodeClan focussed on bridging the critical digital skills gap in Scotland and supporting a new generation of digital talent. Launched with a core curriculum to retrain people from all backgrounds and professions, the company taught students the fundamentals of software programming.

CodeClan provided training from sites in Edinburgh, Glasgow and Inverness. The business was significantly impacted by Covid, and challenging recent market conditions also hit the turnover. A lack of cash flow has resulted in the company being placed in liquidation and immediately ceasing to trade in early August 2023.

Students to complete course after all as CodeClan assets sold to CodeBase

The news had grave consequences for students already on the course. As reported by The Scotsman, Stuart Ure, one student from Edinburgh, had given up his job and spent his savings in order to attend a 16-week professional software development course with CodeClan, as Scotland’s government encouraged people into the technology sector to make up for a skills shortage.

The day before the news of CodeClan’s collapse broke, Ure and his classmates had presented their first projects, and felt the coming course was full of “excitement and promise”. Ure told The Scotsman there was no way of knowing “this would all come crashing down on us less than 24 hours later.”

A statement on CodeClan’s website said it had fallen into liquidation and would cease all operations as of early August 2023. This included making all its staff redundant, ahead of the appointment of joint liquidators Craig Morrison and Scott Milne of Quantuma Advisory.

Ure initially launched a crowdfunding campaign to enable students complete their studies, by paying the tutors to help “get us over the finishing line”. Less than a month later, however, a press release from Quantuma suggests that the campaign will not be necessary.

UK technology incubator CodeBase has acquired CodeCan’s training materials and other assets. The sale, delivered on a tight timetable from Morrison and Milne, will enable around 80 CodeClan students to complete their courses from one of CodeBase's sites, and discussions are underway to re-establish a digital training facility.

Morrison commented, “Mindful of the students impacted by the CodeClan business closure, it became clear that several interested parties might be able to assist those students. We were quickly able to run a sales process and thereafter complete a sale in a relatively short timescale and I am very pleased that the Quantuma team was well placed to make this happen. I am delighted to complete the sale to CodeBase which will hopefully provide a solution to many of those students who were effected and who have faced a disrupted and uncertain few weeks.”