Protec Recruitment Services Limited (07320535): administration
- Status
- Administration ended
- Administration began
- 2017-07-14
- Administrators
- Gary Norton Lee, Dean Watson
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2010-07-20
- Location
- Preston
- Industry
- 78200 Temporary employment agency activities
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Credit insurance / supplier credit withdrawn
- Weather / natural events
From the administrators' statement
Approximately 18 months ago, the Company suffered a significant bad debt as a result of a major customer, J E Wilsons Creative Confectionary (‘Wilsons’), being placed into an insolvency process. Although the debt was credit insured the Company lost c£50k. More significant to the Company was that c40% of its business was placed with Wilsons. The business and assets of Wilsons were sold in a pre packaged sale and the new entity decided not to engage with the Company and employ staff directly. This resulted in c40% of the business of the Company being lost.
The Company continued to trade through these difficulties by winning new work and securing other temporary recruitment work. However, another setback was suffered in December 2015 when the Lancaster area was severely flooded. This resulted in an effective 6 week shutdown in the area which resulted in no requirement for temporary labour.
In between August 2016 and January 2017, the Company invested in infrastructure and set up another office to deal with a requirement of temporary labour for B&M in Merseyside. Significant sums were invested in recruitment fees, office set up costs etc and the Company secured finance to ensure that the investment could be made. It is estimated that c£70k was incurred on the set up of the Merseyside operation. However, in early 2017, B&M made a decision not to use temporary labour and use their own employees which resulted in no additional work for the Company.
Administrators' statement of proposals (2017-09-04) · Companies House register