A cash-strapped Birmingham college is closing two of its sites and has been told by government chiefs its "next few months will be critical".
Further Education Commissioner Dr David Collins branded Birmingham Metropolitan (BMet) College's management "not acceptable" in a damning review of the college which has 20,000 post-16 students and 2,000 apprentices.
The commissioner was parachuted in to BMet in August following its request for "exceptional financial support" from the Skills Funding Agency.
The move came just months after the college, which was deemed by Ofsted in May to be "requiring improvement", announced it would be axing around 15 per cent of its 1,600-strong workforce.
Dr Collins' report into his assessment of the college has revealed the institution, which is split across 14 sites, is now set to close its Language Centre in Conybere Street.
Courses at the centre, for people learning English as a second language, will be transferred to its Matthew Boulton campus in the city centre.
Meanwhile, BMet has also sold off a site in Castle Vale and plans to "dispose of" a further three. The college said these sites were disused land it owns which it is selling.
Dr Collins praised the college for having taken measures to improve its financial position but criticised past management and questioned whether it would be able to get back on track quickly enough.
"Until early 2015 the standard of financial management and control in the college was not acceptable," said Dr Collins.
And Skills Minister Nick Boles added: "Although the college now has in place the expected policies and process in order to achieve quality and financial recovery, the next few months will be critical to determine whether or financial recovery can be achieved.
"The college needs to focus on delivering a more sustainable financial position, while ensuring that it delivers a high-quality learning offer that meets the needs of learners and employer."
The report said BMet replaced chief operating officer Bob Pattni in February with a new chief financial officer, who found the college's income forecasts for the year were "seriously overstated".
In his report, Dr Collins recommends that the "existing team should be supported" in its work to "address the significant quality and financial issues it has inherited".
Dr Collins also recommended reviewing the management of apprenticeships "to ensure a clearer focus on performance" after finding that results for 2013/14 were "very low" with 41.1 per cent of all age leavers below the minimum standards threshold.
Principal Andrew Cleaves has revealed that 246 staff have accepted voluntary severance while six have been made compulsorily redundant.
Mr Cleaves said: "We are pleased that the FE Commissioner has recognised all the hard work that has been done over the past few months.
"He reports that our recovery plan is impressive, which reflects the fact the college has taken a number of actions to improve our position and we have a robust plan in place.
"Since spring this year, we have significantly reduced expenditure and undertaken a successful voluntary severance programme which delivered targeted savings.
"We have recently sold off a campus in Castle Vale and will continue to make sensible decisions to improve our efficiency and to use our estate as effectively as possible."
