Pre-pack deal secures future for £230m-turnover recruiter

Recruitment firm Transline has been bought in a pre-pack deal after it was hit by a sustained period of poor trading.

Wirral-headquartered recruiter Russell Taylor Group has bought the business and certain assets of the company through its vehicle NMS Projects. All of Transline’s 5,560 employees will transfer over.

Transline is the trading name of Qualitycourse Ltd, which provides temporary agency labour into the logistics, warehousing and manufacturing industries. It has been in the spotlight because of working practices uncovered at Sports Direct’s Shirebrook facility and the Barnsley Asos warehouse, where it placed thousands of workers.

It employs around 40 people at its headquarters in Brighouse, West Yorkshire, from where it directs the £230m-turnover operation.

Clare Boardman and Daniel Butters of Deloitte were appointed as administrators before completing the sale of the business. Transline had previously filed its intention to appoint administrators, which is a legal manoeuvre that provides a limited window for a company to resolve its problems safe from the threat of further legal action from creditors.

 

Ben Russell, chief executive of Russell Taylor Holdings

Ben Russell, chief executive of Russell Taylor Holdings

Russell Taylor Group has said there will be “no changes to the day-to-day operations” of Transline.

Ben Russell, chief executive of Russell Taylor Holdings, said: “Transline has been a growing force within the industrial recruitment industry for nearly three decades with long-term customer relationships across the most successful businesses in retail and logistics.

“The industrial recruitment industry has faced pressure due to the exponential growth of the UK e-commerce sector and the experience and quality of the Transline team and its investment in compliance and infrastructure will ensure the business reaches its future potential.”

Qualitycourse’s most recent published accounts, for 2015, showed a small pre-tax loss of £74,000 for the group.

Joint administrator Clare Boardman said: “Following a period of uncertainty and what turned out to be a poor Christmas trading period, the conclusion of the sale is an excellent outcome for all involved.

“This will safeguard the employment of the remaining workforce which is significant. We have confidence the acquirers are a good fit and will be able to take Transline forward.”

Addleshaw Goddard’s Andy Bates, John Duffy, Jonathan Jackson and Chris Keane provided legal advice.

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