HMRC big loser as recruitment firm sold in pre-pack deal

A Swadlincote recruitment firm has been sold in a pre-pack deal despite only paying back a fraction of what it owes to HMRC.

Recruit 2 Suit U has been sold out of administration to a firm called Recruit2SuitU (Midlands). Both are owned by director Gemma Buckley. The former company owed nearly £170,000 to HMRC, but will pay just £22,000.

Recruit 2 Suit U was set up in 2010 by Buckley, and was formed from the ashes of a former company she owed – Recruit 2 Suit – which, according to administrator Kevin Lucas of Lucas Johnson, ceased to trade and was dissolved following “the breakdown of the director’s previous business relationship.”

Lucas’s report says that the company traded successfully for a number of years and only fell into difficulty when it lost its main client to a national rival.

The report adds: “At this time the director had a number of significant personal commitments and was unable to reduce the level of funds drawn down from the company. The director attempted to expand the business in order to continuetrading in an effort to trade the company out of its current position.”

This, say the administrators, meant that Recruit 2 Suit U wasn’t able to pay HMRC the funds it was owed, and despite it making a profit, it was unable to pay the cash in a timeframe demanded by the Revenue – and was therefore insolvent.

It emerged that Recruit 2 Suit U owed HMRC £164,847.49 and was issued with a winding up petition. The company was placed into administration on 8 April.

A pre-pack sale for £22,500 was arranged by the new company set up by Taylor Recruit2SuitU (Midlands) – this went through on 28 April and the money will be paid in 10 payments of £2,250 – two of which have already made. This money will go to HMRC.

Recruit2SuitU didn’t respond when we tried to contact the company.