Oct 26th 2016 9:10am
We are proud to have saved more than 120 jobs after the business and assets of a recruitment firm specialising in the construction, rail, technical and engineering sectors were bought out of administration by Minstrell Recruitment.
Spectrum Contracting Services entered administration on 6 October 2016, with Lila Thomas and Benny Woolrych of FRP Advisory appointed to handle the case. The business has over the past ten years established itself in its target markets with turnover recently peaking at approximately £25m, but more recently the company's rapid expansion had put unsustainable pressure on its cash-flow and financial structure.
FRP said that after efforts to secure further investment into the company failed to materialise, Spectrum had no alternative other than to seek the protection of administration.
A sale of the ongoing business was then swiftly concluded to Minstrell Recruitment, the national permanent and temporary staff recruitment firm. The transaction ensured continuity of trading and secured jobs for 121 of the 131 staff and ongoing work for hundreds of temporary agency staff associated with the Swinton-registered Spectrum business across premises in Manchester, Liverpool, Birmingham, Durham and Wakefield which are now trading under the Minstrell Recruitment brand.
According to administrators, the transaction provides a solid platform both to consolidate Minstrell's position in its existing geographies and specialist markets, and to accelerate its growth across more UK regions by adding the Spectrum operations to Minstrell's offices in London, Leeds, Weybridge and Manchester.
The joint administrators added that they have ensured any employees who were made redundant received the necessary support to progress their claims through the Redundancy Payments Service as quickly as possible.
Lila Thomas, partner and joint administrator at FRP Advisory, said: "This is a great result not just for so many staff, but importantly for all the businesses these recruitment professionals serve up and down the country who can now operate under the Minstrell brand right the way from Manchester, Liverpool and Birmingham, up and across to Wakefield and Durham.
"We are delighted to have found a new owner in the form of Minstrell, which we are confident can take this well-known business to its next stage of growth and development. We wish all involved every success for the future."
TLT Solicitors acted on behalf of the joint administrators with legal advice on the administration and sale. Minstrell was provided with debt finance support from Allied Irish Banks and legal advice from Blacks Solicitors in relation to the acquisition.