More than 200 jobs have been saved after a recruitment firm was bought of administration.
Stockton-based MC2 Technical Recruitment Limited specialises in providing staff to clients in the oil and gas and renewable energy sectors, but the business collapsed into administration following the loss of two major contracts, putting all 224 workers at risk.
The company was placed in the hands of joint administrators Andrew Haslam and Gillian Sayburn of Begbies Traynor Group (BTG) in Newcastle in August, who took advice and support from Ryecroft Glenton Corporate Finance.
Working together the two firms immediately secured a sale of the majority of the business to national recruitment business, Jark Plc, securing 216 jobs and enabling part of the business to continue trading.
Eight jobs, however, have been lost through the closure of one office.
Established in 1996, the Jark Group turns over around £80m a year as a national staffing business offering recruitment services with divisions specialising in construction, driving, healthcare, industrial and public sector.
Joint administrator Andrew Haslam said: “The company established itself in the Teesside area recruiting specialist contractors into the oil and gas industry, both at home and abroad.
“In autumn 2013, it acquired the Leeds-based Network Employment Consultancy, which places temporary staff within and around Yorkshire.
“Unfortunately, following the loss of a number of contracts, the core Mc2 business became unsustainable and the directors had no alternative other than to seek to protect the successful part of the business, NEC, along with its employees and temporary workforce.
“Working with Carl Swansbury and Abu Ali of Ryecroft Glenton Corporate Finance, we were able to swiftly conduct a marketing exercise and were successful in identifying a strategic buyer for NEC.
“Complementary recruitment company Jark plc has acquired the entire Network Employment Consultancy business, securing the operation of NEC’s three offices and all staff associated with this division of the business.”
Carl Swansbury, partner of Ryecroft Glenton Corporate Finance, added: “Earlier this year Mc2 lost two of its most notable clients, which had a substantial impact on Mc2’s performance, profitability and cash flow, hence the company being placed into administration.
“NEC, which was run as a separately branded business within Mc2 is a good business, with an experienced management team and team of employees.
“The company operates from four offices and has a long standing client base, along with a substantial bank of experienced temporary workers and therefore I knew that the business would be of interest to a number of strategic partners.
“Despite the circumstances and extremely challenging timetable we were able to identify national staffing business, Jark Plc as the ultimate buyer for the business, which has enabled NEC to continue in business, whilst securing the employment of its 200 temporary workers and 16 direct employees.”
John Buckman, chairman of Jark plc, added: “NEC is a perfect fit for the Jark Group. We are very pleased to welcome NEC and its experienced staff to the Jark family and look forward to realising the added value the acquisition brings to the group in the coming months.”