Lincolnshire recruitment firm sold in pre-pack deal

A Lincolnshire recruitment firm has been sold out administration in a pre-pack deal, saving all seven jobs at the firm.

Steven Stokes and Rajnesh Mittal, partners at FRP Advisory, were appointed joint administrators to MRN Recruitment on 18 February 2019. The move came 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.

The joint administrators have sold MRN Recruitment to Birmingham-headquartered Capital Outsourcing Group Food.

The company 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.