Options are now being considered over the future of the building and staff are being supported to find new jobs, the Ministry of Justice has said.
Prisons minister Victoria Atkins said the decision to terminate MTC’s contract was a “mutual decision”.
It comes following a string of damning reports by inspectors which included concerns from children and staff that a child or adult could be harmed or die as a result of failings at the site.
In June, all children at the Warwickshire facility, which was rated “inadequate” by HMI Prisons, Ofsted and the Care Quality Commission, were removed over major safety concerns.
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