Lambeth council have issued a statement after the closure of Kids Company, which runs a number of services in the borough, was announced.
The charity has been hit by a allegations relating to bad financial management and last week police launched an investigation into sex abuse claims.
Ministers are now facing questions over the public funding it received.
Its founder, Camila Batmanghelidjh, has said the organisation will close at 7 pm this evening.
There were angry protests today outside the organisation’s Camberwell headquarters.
Kids Company was set-up in 1996 to provide “practical, emotional and educational support to vulnerable inner-city children, young people and families” and operates in London, Bristol and Liverpool.
In July 2013 Lambeth council committed £193,000 to Kids Company over three years towards running a One O’Clock Club and an adventure playground in the borough and the charity also runs a number of after-school clubs.
A Lambeth Council spokesman said: “We are aware of the concerns over the future of Kids Company and its work in Lambeth, and our priority is looking after the children and young people who rely on its services.
“Kids Company is currently contracted by Lambeth council to run a One O’Clock Club and an adventure playground in the borough. The Council will re-open these services as soon as possible, so the children and parents who rely on them are not adversely affected. We are also letting children and parents know about the facilities and activities nearby that are open throughout the summer holidays.
“Kids Company also provides after-hours kids’ clubs to some of our schools. Those services are directly negotiated between the school and the charity. We have already written to schools and are helping to ensure that affected after hours clubs will resume once the summer holidays are over, with a new provider if necessary.”