Overview:
David Kemp and Richard Hunt of Exigen Group Limited were appointed Administrators of DRS Recruitment Ltd, a recruitment business based in Wellingborough, Northamptonshire.
Incorporated on 1 June 2017, the Company was led by Jemma Keywood Bellamy following the closure of a previous recruitment venture. Operating in a highly competitive recruitment market, DRS Recruitment had established an active client base but began to experience growing pressure from historic liabilities and other market factors.
As these challenges grew and the business came under increasing strain, the director sought professional insolvency advice, which ultimately led to the appointment of an Administrator.
Financial Challenges:
The Company’s financial difficulties began with a historic property-related dispute, which the directors made efforts to resolve. As the situation developed, it became clear that the litigation would be lengthy, costly and commercially disruptive, pulling focus away from the day-to-day operations.
The company was also using invoice finance facilities and managing a debtor ledger, which added further pressure to the cashflow.
Exigen Group was introduced by Pulse Cashflow Finance Limited. Early conversations centred on helping the director clearly understand the options available and agreeing a practical, proactive route forward that would protect both the business and its assets.
Exigen’s Appointment and Outcome:
Administration was identified as the most appropriate process, as it allowed the business to continue trading while a restructuring solution was explored. This approach avoided the disruption and loss of value that would likely have followed a liquidation.
The business was marketed which generated a number of expressions of interest. Following negotiations, an associated entity submitted the highest offer, which was accepted. The transaction completed on a going-concern basis, allowing the business to continue operating with minimal disruption.
Key outcomes included:
- The business and its assets were preserved through Administration, representing the best outcome in the circumstances
- A sale was completed on a going-concern basis
- A number of roles were safeguarded as part of the restructuring
- The secured creditor is expected to be repaid in full
Administrator Comments:
David Kemp of Exigen Group said:
“Recruitment remains a challenging and competitive sector. This case underlines the importance of addressing disputes early, before they become drawn out and expensive. By seeking advice early and using Administration as a restructuring tool, the director was able to protect the underlying business and achieve a positive outcome for stakeholders.”