Tec Partners had been in business for over a decade (Image: Getty)
A UK recruitment company has plunged into administration – but has been bought out by a new company set up by its former directors. The company, based in Norfolk, owed HMRC £402,627 and creditors a combined £4,549,449.
Tec Partners specialises in technical recruitment and executive search consultancy, covering the technology, gaming, engineering, and scientific markets. The business had 12 staff members and had eight resignations during its time as a company.
The Tec Partners Holding Company, The Tec Recruitment Group, owned by Christopher Beech, Leigh Howard, and Paul Kitley, appointed administrators on May 1
The group has now been purchased by Tec Partners Recruitment Limited, a set up by the three directors on April 26 this year, in a pre-pack sale for £175,000. A total of £75,000 will be paid upfront and £100,000 in deferred installments over 12 months.
The recruitment agency had been in business since April 2, 2004, and Companies House show records that it had overdue accounts. Tec Partners, which has offices at Fuel Studios in Pottergate and in Reading, continues to trade as normal.
The group, which also included the solvent companies Tonic People Limited and NxtGen Recruitment Limited, which were sold as part of the deal for a combined £45,001, generated a turnover of around £7 million immediately before entering administration, according to administrators RSM.
Tec Partners’ directors said the business has “faced extremely challenging market conditions” over the last few years.
“Those challenges came to a head following well-publicised restructures at several major clients, where tens of thousands of roles were made redundant,” the three directors said in a joint statement.
“This led to the immediate termination of a significant number of contractors we supported, reducing revenues by a critical amount almost overnight and placing the business under severe financial pressure.
“After seeking professional advice, the appointed insolvency practitioner advised and conducted a wide-ranging marketing exercise for the business, which attracted a number of offers, with the offer from the incumbent directors considered the strongest outcome available.
“Most importantly, this has enabled the business to preserve all jobs, continue trading and provide a more stable environment for the future.”
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