The YMCA in Preston is to sell its building and has made ten people redundant after the organisation realised it had been running on its reserves for months.

The organisation which has been based in Samuel Street, Fishwick, for 25 years is to sell its building to pay the £40,000 redundancy bill.

Currently the YMCA runs a nursery, IT training and various youth and children's programmes from the building. Staff involved in this work are being made redundant, and at least one has worked there for more than 20 years.

The Rev Philip Tyers, chairman of the board of management, said a number of issues had compounded the problem which was only discovered a couple of weeks ago.

The YMCA's Wysemove project, which helps homeless young people move into accommodation and employment, will continue from Avenquest's Albyn Bank Road offices, Avenham.

Rev Tyers, of St Matthew's Church, said: "It's been very difficult and upsetting, and we should have seen it coming. We are annoyed that we did not take action quick enough, you always think that there's going to be hope around the corner.

"We have many loyal staff who have worked hard for many years to serve the local community.

"They were upset and angry when they were told the news. They said if they had known earlier they could have helped by doing things like fundraising."

He said a broken boiler and replacing computers had added to the centre's troubles.

"But we always struggled to raise sufficient core funding for the costs of running the building.

"We've had 25 years of good work in the Fishwick and Callon areas, and it is with great sadness that we have taken this decision."

A summer camp for nine to 14-year-olds will continue throughout the summer, and rooms can still be hired by calling 01772 794103.