Jobs saved as recruitment firm sold out of administration

The jobs of 12 workers at a West Midlands recruitment company have been saved after the business was sold out of administration.

Nova Recruitment Services has offices in Birmingham and Dudley and served firms in the industrial, retail and catering sectors, as well as a number of large companies in the Birmingham area.

While revenues rose to around £4.4m in 2016 and the business continued to enjoy long-standing relationships with a number of customers, it began to experience problems, eventually facing unsustainable pressure on its working capital.

Nova explored a number of options to find a more sustainable financial structure, however, it ultimately was left with no feasible alternative to ensure ongoing trading, other than to seek the sale of the business and its assets via administration.

The company engaged FRP Advisory to run an accelerated sales process in an attempt to secure the sale of the business as a going concern and maximise payment opportunities for creditors.

Steven Stokes and Raj Mittal were appointed joint administrators on January 8, 2018 and the businesses and its assets were immediately sold to Capital Outsourcing. All 12 staff have been transferred over to the purchaser.

Mr Stokes said: “We are very pleased for the former owner and the company’s loyal staff that the business can continue under new ownership, helping it to deliver the same quality of service to its array of long established customers built up from nearly 40 years of trading.

“Capital Outsourcing appears to have the same customer orientated ethos that allowed the company to build a strong reputation serving a number of well-known large and medium sized businesses across the Midlands. We wish all concerned the very best under the new ownership structure.”

Squire Patton Boggs advised FRP on the sale. Lead partner was Russ Hill.