Published: 8th September 2016
A pre-pack administration deal has seen a recruitment agency based in Warrington acquired by a larger player in the same market.
Foresight Recruitment Solutions has been bought by First Holdings (UK) in a move that is expected to save around 20 jobs.
First Holdings was reportedly interested in acquiring Foresight Recruitment Solutions earlier this year and while it was still a solvent business.
However, the company was hit with a winding up petition from HMRC in June and was struggling to maintain cash flows and stay in business around that time.
That scenario eventually left First Holdings in a position to acquire Foresight Recruitment in a pre-pack arrangement negotiated through its appointed administrators.
“This is an exciting acquisition for us all,” said First Holding’s chief executive Matthew Reddy in a recent statement.
“Foresight’s business culture and vision fits extremely well with our group, which will enable us to grow each business with our exceptional service delivery standards and create cross selling opportunities for each other.
“I am delighted that, as a result of our acquisition, we have been able to ensure all the [Foresight Recruitment] staff and temporary workers are being paid on time.”
According to Insider Media, a “significant funding gap” opened up in the context of Foresight Recruitment’s finances after the first half of its financial year and one of its key creditors subsequently declined to expand the scope of its financial support.
This led to the business being entered into administration while facing a winding up petition and owing HMRC in the region of £1.6 million.
In addition to the staff employed directly by Foresight Recruitment, it is understood that the company’s purchase out of administration will help support the temporary employment of several hundred people who were placed in professional roles by the agency.
“First Holdings has already ensured that Foresight’s temporary and permanent staff, together with its suppliers, have not been adversely affected and have been fully paid up to date,” a Foresight Recruitment spokesperson told Insider Media.
“First Holdings offers Foresight not only the support and infrastructure of a much larger entity, but also has many operating synergies, business ethics and the same belief in offering clients an unrivalled service.” Real Business Rescue provide director advice online, over the phone, or in-person at one of our 78 UK offices or a place of your convenience.