A DIRECTOR of recruitment consultancy PRG Recruitment has set up a new company to continue PRG’s business activities after administrators were called in by one of its creditors.
Colesco Consulting, whose managing director is former PRG director Margaret Richmond, was incorporated on 2 August, 14 days before Close Invoice Finance exercised its right to appoint administrators.
Close, which lends money to help companies improve their cashflow, was one of three creditors that had security over PRG’s assets. HSBC and Switzerland-based investor Andrew Goodwin were the other two.
While PRG stopped making its turnover public in recent years, documents filed at Companies House show that it turned over £1.1m in the year to December 2012 with £913,339 due to creditors by the end of 2013.
By the end of 2014, the company was due to pay just under £2m to creditors within the following 12-month period.
RSM Restructuring Advisory partner Paul Dounis, who is acting as PRG’s joint administrator, said the recruitment consultancy had been put into a prepacked administration to allow it to continue operating in spite of its cashflow difficulties.
“Preserving the value of the business and continuity of services to key clients were our key priorities and we are extremely pleased to have been able to achieve both objectives,” he said.
“The deal allows for the preservation of a long-established business and saves a number of jobs in Scotland.”
As part of the prepacked deal 22 full-time members of staff have moved across to Colesco, although neither the company or the administrators would confirm if there had also been redundancies.
Most of PRG’s assets have moved across to Colesco, which is paying the administrators for them in an unspecified number of instalments.
Some office equipment will also be sold at auction.
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