Prepack deal saves jobs at financial recruiter
Nine jobs have been saved at Bolton and Manchester-based recruiter Four Financial Recruitment following a pre-pack administration.
Founder Philip Sofield has put up a personal guarantee to purchase the business and its trademarks, website and goodwill from administrators Cowgills Business Recovery for £26,000.
The business, established in 2007, specialised in accountancy and finance specialists, but hit a rough patch during the pandemic and suffered higher than usual staff turnover going into 2023.
The company had expanded with a central Manchester office to reinforce its city centre presence, boost internal recruitment and “continue its growth trajectory” Sofield told TheBusinessDesk in January 2022.
The company claimed then that 2021 had been a record breaking year as it “increased turnover by 72% and headcount by 45%”. This second office was intended to support the company’s ongoing internal recruitment drive.
But things took a turn for the worse according to filed documents seen by TheBusinessDesk.com. By December 2023, when Cowgills were appointed on the request of accountants Sedulo, the company owed a total of £445,178, notably £124,000 to lender Funding Circle, £25,000 to an unspecified landlord, £193,555 to HMRC for PAYE and a further £67,000 to HMRC for corporation tax.
The administrators statement says: “During 2023 however, the Company began to suffer a downturn in their business as a result of the following: High turnover of staff, including the loss of key members to direct market competitors, in addition to increased salary expectations, due to the market position; and fallout from liabilities incurred during the COVID-19 pandemic, which resulted in significant HM Revenue & Customs (“HMRC”) arrears and a subsequent time-to-pay arrangement being agreed.
“Draft accounts for the year ending 31 December 2023 have yet to be prepared; however, due to recent events, the company directors realised that the recent staff turnover and the terms of the time-to-pay arrangement with HMRC meant that the Company was likely to encounter further financial difficulties.”
However, nine jobs have been transferred over by TUPE to the new company, FFR Limited, which is owned by Philip Sofield and his sister and business partner Claire Sofield.
The Cowgills team acting on the administration were led by Jason Elliott and Craig Johnson. Cowgills and Sofield have been approached for comment.
