Recruitment specialist buys rival out of administration

MANCHESTER-based Minstrell Recruitment has bought the business and assets of Spectrum Contracting Services, a specialist recruitment firm for the construction, rail, technical and engineering sectors.

Spectrum has five offices across the North West and Midlands.

Lila Thomas and Ben Woolrych, partners at FRP Advisory, the business advisory firm, were appointed as joint administrators to Spectrum on October 6, and have completed a sale of business.

The transaction ensured a continuity of trading and secured jobs for 121 of the 131 staff and ongoing work for hundreds of temporary agency staff associated with the Spectrum business across premises in Manchester, Liverpool, Birmingham, Durham and Wakefield, and who are now trading under the Minstrell Recruitment brand.

Minstrell says the deal provides a solid platform both to consolidate its 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.
 
Spectrum had over the past 10 years established itself as one of the UK’s best known recruitment firms within its chosen markets with annual turnover recently peaking at around £25m, but the business’ rapid expansion had more recently put unsustainable pressure on the company’s cash-flow and its financial structure.
 
FRP says after efforts to secure further investment into the company failed to materialise, Spectrum had no alternative other than to seek the protection of administration and secure an immediate sale to Minstrell, to secure a more viable solution to Spectrums’ vibrant on-going business and safeguarding jobs for the vast majority of its recruitment professionals.
 
The joint administrators at FRP Advisory say have ensured that 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.