Implicit within the arrangement was the need for HETB to grow its sustainability during the three-year contract period so that if the funding stopped, they would be able to continue.
We did agree to take on the three HETB employees whose jobs were paid for out of this contract.
David Moyser, HETB chief executive, denied the decision was a result of insolvency but said the board had found it difficult to operate after losing support from the regional development agency.
A new body, Tourism West Midlands, has been set up by the agency to promote the region, but Mr Moyser said the end of the HETB meant four decades of experience and the opportunity to "really work" with the private sector would be lost.
A three-year contract was agreed between HETB and Advantage West Midlands, worth around pounds 1 million a year.