A REDDITCH charity for the homeless is to close after hitting financial difficulties.

Step Out Drop In (SODI), based in Evesham Street, Smallwood, has gone into liquidation.

Charity Commission spokesman Becky Drake said: "We have been told informally that SODI is going into liquidation but we are expecting official confirmation later this week."

She said the commission, which registers and regulates UK charities, was already investigating allegations of financial mismanagement within SODI, and the findings would be published next month.

Ms Drake also confirmed that SODI's chief executive, David Cartwright, who is also Redditch Council's Leader, had recently resigned from his position.

The charity, which was formed in 1996, was launched to help support young, vulnerable and homeless people in Redditch.

Mr Cartwright said: "I knew SODI was in financial difficulties.

"Back in July last year, the charity lost a contract in Droitwich, which was at least a third of its income and that was clearly going to provide difficulties."

Mr Cartwright said he expected other agencies would support SODI until an alternative provider could be found.

"The intention will be to ensure that there is continuous service to those who need it," he added.

"From a personal perspective, I think it is a tragedy that the charity has closed."

Redditch Council's borough director Chris Smith said: "It is regrettable that SODI is experiencing some difficulties.

"The charity was set up to serve some of the most vulnerable within our community.

"We will be working with colleagues in other agencies to ensure that those at greatest risk do not encounter even more difficulties."