Member Article

Teesside recruitment business bought out of administration saving 216 jobs

Teesside-based recruitment business, MC2 Technical Recruitment Limited, has been bought out of administration, saving 216 jobs and enabling part of the business to continue trading.

Based in Stockton on Tees, MC2 Technical Recruitment is a provider of contract, temporary and permanent staff to clients operating in the oil and gas and renewable energy sectors.

It was placed in the hands of joint administrators Andrew Haslam and Gillian Sayburn of Begbies Traynor in Newcastle upon Tyne on 19 August 2014 who, with the advice and support of Ryecroft Glenton Corporate Finance, immediately secured a sale of the majority of the business to national recruitment business, Jark Plc.

The Jark Group, established in 1996, generates around £80 million in turnover and offers recruitment services with divisions in construction, driving, healthcare, industrial and public sector.

Joint administrator, Andrew Haslam, said: “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 Yorkshire offices and all staff associated with this division of the business.

“Unfortunately, we were unable to find a buyer for the Teesside operation, resulting in the closure of the office and the loss of eight jobs.

“The assistance and support of funders, the management team, Ryecroft Glenton Corporate Finance and the other professional advisers engaged was vital to ensure that at least one division could be rescued in a very short timescale, and we wish Jark Plc every success.”

John Buckman, Chairman of Jark plc, comments: “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.”

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