A long-running Birmingham charity helping 20,000 young people a year which collapsed following Government spending cuts faces closure after failing to find a buyer.

All 26 staff at BXL Services, based at the Centennial Centre, have now been laid off by administrators PwC – and the charity has withdrawn services to its customers.

The organisation had a lengthy history of helping 13 to 19-year-olds find work opportunities throughout the West Midlands, providing training, work experience and other support for youngsters.

But administrators were called in after Government-imposed spending cuts led to a major decline in income for the £1 million turnover charity.

John Ling, chief executive of BXL, said at the time of the charity’s collapse last month: “This is a very sad day for the West Midlands.

“This is yet another blow to young people who potentially will no longer have access to essential work placement opportunities, work-related learning and links with the region’s business community.”

But a new statement from administrator Tony Barrell of PwC said: “Since their appointment, the administrators have been looking to find a purchaser for the business that would enable a continuity of service to its existing customers.

“Unfortunately to date, no purchaser has been found and therefore the workforce at BXL were all made redundant on February 10 2012.

“The administrators will continue to look for a purchaser that may be interested in providing services to BXL’s existing customers.”

Mr Barrell said BXL were no longer in a position “to provide services going forward” to existing customers.

The charity has provided services predominantly to the education sector but suffered a dramatic decline in income since 2008, with programmes reduced due to the Government’s public sector austerity measures.

The charity’s trustees called in administrators following a sharp decline in income allied to significant pension liabilities.