Jobs saved as recruitment firm snapped up in pre-pack deal

Jobs have been saved at a recruitment company after administrators secured the sale of the business to a Birmingham-headquartered firm.

MRN Recruitment, a specialist recruitment firm that supports businesses across East Anglia, has been acquired out of administration in a pre-pack deal which has safeguarded seven jobs as well as agency staff.

Steven Stokes and Rajnesh Mittal, partners at specialist business advisory firm FRP Advisory, were appointed joint administrators on February 18 after the business suffered cash flow pressures following a reduction in turnover last year and the pressure of Company Voluntary Arrangement contributions, leading to an inability to pay creditors as and when they fell due.

Following an accelerated sales process, the administrators secured the sale of the business and assets to Birmingham-headquartered Capital Outsourcing Group Food, one of the UK’s fastest growing recruitment firms.

ThecCompany will continue to trade from its existing site in Spalding and all employees have transferred to Capital Group.

Stokes said: “This deal delivers the best result for all stakeholders, and most importantly saves jobs in the local area as well as ensuring continuity of trade for customers and a significant number of agency staff. We wish the team the best of luck as part of the Capital Group.”

FRP Advisory was advised by Irwin Mitchell.