A UK recruitment consultancy that accumulated almost £5 million in debt has gone into administration. Tec Partners, which had been in business since 2004, owed HM Revenue and Customs £402,627 and other creditors a combined £4,549,449.
Company background and administration
Tec Partners specialised in technical recruitment and executive search, covering the technology, gaming, engineering, and scientific markets. The company was based in Norfolk and employed 12 staff members, with eight resignations occurring during its time as a business. The Tec Partners Holding Company, known as The Tec Recruitment Group, was owned by directors Christopher Beech, Leigh Howard, and Paul Kitley. Administrators were appointed on May 1.
Pre-pack sale and new ownership
The group has now been purchased by Tec Partners Recruitment Limited, a company set up by the three directors on April 26, in a pre-pack sale valued at £175,000. A total of £75,000 will be paid upfront, with the remaining £100,000 to be paid in deferred installments over 12 months. The recruitment agency had been trading since April 2, 2004, and Companies House records show overdue accounts.
Tec Partners, which has offices at Fuel Studios in Pottergate and in Reading, continues to trade as normal. The group 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. According to administrators RSM, the group generated a turnover of approximately £7 million immediately before entering administration.
Directors' statement on challenges
Tec Partners' directors stated that the business had "faced extremely challenging market conditions" over the last few years. In a joint statement, they explained: "Those challenges came to a head following well-publicised restructures at several major clients, where tens of thousands of roles were made redundant. 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 conducted a wide-ranging marketing exercise for the business, which attracted a number of offers. The directors noted that the offer from the incumbent directors was 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," they added.
