A Birmingham-based recruitment firm has rescued an East Midlands rival after it fell into administration because of cash flow pressures.

City centre outfit Capital Outsourcing Group has bought Lincolnshire-based MRN Recruitment which operates across East Anglia.

Steven Stokes and Rajnesh Mittal, partners at financial services firm FRP Advisory, were appointed joint administrators in February after MRN Recruitment suffered cash flow pressures following a reduction in turnover last year.

FRP said the pressure of Company Voluntary Arrangement contributions also led to it being unable to pay creditors as and when payments fell due.

 

Following an accelerated sales process and their subsequent appointment, administrators secured the sale of the business and assets to Capital Outsourcing Group.

MRN Recruitment will continue to trade from its existing site in Spalding and all employees have transferred to the new owners following the undisclosed deal.

Mr Stokes said: "This deal delivers the best result for all stakeholders and, most importantly, saves jobs in the local area as well as ensuring continuity of trade for customers and a significant number of agency staff.

"We wish the team the best of luck as part of the Capital Group."

FRP Advisory was advised by Irwin Mitchell.