Nottingham City Council's energy company is being sold to Centrica, the company which owns British Gas, Nottinghamshire Live understands.
The move will see Robin Hood Energy’s customer base sold, meaning customers will transfer to British Gas.
Around 250 members of staff have been made redundant, and have been told this afternoon (Thursday, September 3).
The move will be officially confirmed at 7am tomorrow morning, it is understood.
A Public Interest Report issued last month into the handling of the company said the council’s total liability was £59.6 million.
Of that, £24 million of bad debt has already been written off by the council.
An employee at the company, who asked to remain anonymous, confirmed all staff were made aware of their redundancy shortly after 3pm today.
The company was founded in 2015 to challenge the so called ‘Big Six’ energy firms, which includes British Gas.
Centrica declined to comment on the sale ahead of the official confirmation tomorrow morning.
Robin Hood Energy also declined to comment on the sale ahead of tomorrow.
Nottingham City Council has been approached for comment.
