Birmingham Pride chief Lawrence Barton says firm's collapse owing millions was 'most difficult time'

A settlement has been agreed following a five year dispute and investigation into the demise of GB Training (UK) Limited

A 'confidential' deal has been reached between Birmingham night club and bar owner and Pride festival director Lawrence Barton and liquidators after a business he ran providing training for job seekers and apprentices went bust, with 70 job losses.

The details of the settlement are not being made public, though they will be included in a future public report by the liquidator for affected creditors, likely in October.

At the centre of the case was the demise of GB Training (UK) Ltd, which closed down in 2020.

It has since been subject to a lengthy investigation amid claims for £8.4 million from publicly-funded organisations including the Education and Skills Funding Agency and West Midlands Combined Authority, who contracted the company to provide training and skills for young people and adults.

Mr Barton expressed relief that a settlement had been reached, saying he was 'happy a line has been drawn'.

READ MORE: Probe into £8.4m collapse of company run by Birmingham Pride director Lawrence Barton

He described the last five years as 'the most difficult of his life' but said he has since 'rebuilt', with firms owned by him and his family turning over £10 million last year and employing nearly 100 people, many of them LGBTQ+.

Of GB Training, he said: "We trained hundreds of thousands of learners, supported hundreds of jobs, and achieved many accolades along the way. It was a source of deep pride for my family and for me.

"Then it all fell apart. The past five years have been the most difficult of my life."

Investigations into the case had not proven any wrongdoing on the part of his company and the terms of the settlement 'in no way represents an acceptance of any culpability or guilt in this matter,' he said.

A three-year investigation was carried out by the Insolvency Service into allegations about the company's dealings with the ESFA and others following the firm's collapse, but no action resulted.

A progress report by liquidator Kevin Mawer in late December 2024, published on the Companies House website, made claims of a troubling series of events leading up to and since the firm’s collapse. The 19-page report concluded that the firm’s biggest creditors have ‘little prospect’ of getting any money back.

It also found that the training firm made payments of £331,300 to companies connected to Mr Barton, including iconic gay nightclub The Nightingale, days before going bust.

The club and two other venues linked to Barton in the city's Gay Village have recently consolidated at the club venue, creating a new day-and-night entertainment complex.

Mr Barton said: "I’m now looking forward to continuing my community and business activities and to making a success of the new venues and continuing to supporting to drive forward the Birmingham nighttime economy."

Liquidator Kevin Mawer said: "I am pleased to have reached an agreement which will result in creditors recovering some of their claims."

The Education and Skills Agency had claimed it was owed £4,760,413, while the combined authority was claiming £1,015,779. The third significant creditor was North East Surrey College of Technology (NESCOT), which was owed £2,633,051.

Mr Barton, a well known entrepreneur and public figure in the city, has previously said in a statement: “The Insolvency Service conducted a full and independent two year investigation into my role as a director following a complaint made by ESFA in respect of GB Training. After an extensive review of all relevant evidence, they determined that no action was necessary and there were no findings of misconduct. That decision was reached independently by the UK’s official regulatory body for director conduct and remains a matter of public record."

READ MORE: Iconic Birmingham LGBTQ venues and jobs saved in buyout as administrators step in

Mr Barton is festival director and 'the face' of Birmingham Pride and involved in running landmark venues. He was previously a leadership commissioner at the West Midlands Combined Authority under then mayor Andy Street, and in 2022 he was made the first night-time economy champion for Birmingham City Council.

He is also one of the deputy lord lieutenants to HM King Charles for the West Midlands. He owns a range of businesses, some with other members of his family.

The collapse of GB Training occurred during the Covid pandemic. At the time, in an interview with FE Week, Mr Barton said 70 jobs were lost as a result of the closure.

In his own words: Lawrence Barton on the company's collapse

In a statement on Instagram and LinkedIn, Mr Barton wrote: "Failure doesn’t define us, how we respond does. That belief has been tested more than I ever imagined.

"As many of you know after 23 years at GB Training, a business my mum founded, I worked my way from apprentice to Managing Director. We trained hundreds of thousands of learners, supported hundreds of jobs, and achieved many accolades along the way. It was a source of deep pride for my family and for me."Then it all fell apart. The past five years have been the most difficult of my life."

"We faced an investigation, endured relentless media coverage (as lots of you have seen), and ultimately, the business collapsed in catastrophic fashion. I had to watch something I poured two decades into reduced to headlines, often harsh, often lacking context.

"I must stress that the allegations of funding overclaims by the ESFA and others were never proven, and the terms of the settlement reached in no way represent an acceptance of any culpability on this matter. I remain deeply concerned about the conduct of the investigation, the devastating impact it had on the company I helped build over 20 years, and the loss of jobs and services to learners that followed.

"This isn’t about blame. It’s about ownership. GB Training failed under my leadership. And I own that fully."I didn’t disappear. I didn’t hide. I stood in the storm. And I’ve learned the hard way that when things fall apart, not everyone stays. People distance themselves. I don’t hold bitterness, that’s human nature. But it taught me a lot about who I am, and who’s really in your corner when it counts."A legal settlement has now been reached. It brings closure, not confession. No guilt was found. But for me, it draws a line under this chapter.

"Alongside this, I was also subject to a separate three-year investigation by the Insolvency Service. Although I was always confident in my conduct, the process was long and, at times, deeply difficult. Ultimately, I was cleared of any misconduct. That brought relief, but it doesn’t erase the toll it took."I’m proud that I acted with integrity, even under immense pressure. And I’m proud that my other businesses with my brother & family are now rebuilding, employing nearly 100 people, including many from the LGBT+ community, and turning over £10 million last year.

"I’ve been in business for 30 years. This was my lowest point. But I’m still here. Scarred, yes, but standing."If you’ve been through something similar, I hope this gives you one message, this doesn’t have to be the end of your story. I’ve learned that leadership isn’t just about success. It’s about how you show up when everything falls apart, and what you choose to do next."