The Double Blow for Recruiters

Unemployment is increasing by 1,808 people every day! Redundancies and frozen head counts are affecting the recruitment sector and recruitment companies themselves. This is effectively a double blow.

How does a recruitment business deal with:

  • Sudden loss of trade and income?
  • The resulting cash flow difficulties?
  • The growing burden of debt (in most cases including HM Revenue & Customs)?
  • Retaining productive employees for the inevitable upturn?

These common threads are true for most struggling recruiters. TMP continues to use insolvency tools to assist these businesses, including, where appropriate:

  • Company Voluntary Arrangement
  • Administration
  • Liquidation (where the business is terminal)

Management are looking for solutions to survive.

Common threads exist here too:

  • Communicating with HM Revenue who are willing to negotiate more favourable terms.
  • Negotiating with landlords. We have assisted with a number of negotiations resulting in survival for the recruiters and, at the same time, keeping a tenant for the landlord.
  • Taking action quickly and decisively.
  • Focusing on reality of the business economics without blue sky future projections.
  • Using experienced corporate turnaround and insolvency practitioners such as TMP.

We are committed to assisting ailing companies with our years of experience from corporate restructuring to small business debt relief. Our aim is to find a way for the business to survive, if possible, and maximise the return to stakeholders and creditors.

Contact TMP now without delay to discuss how we may be able to help you. If you would like to receive our newsletter via email, you are welcome to subscribe to our newsletter