Deal saves recruiter from administration

Six jobs have been safeguarded following the sale of a Yorkshire engineering and manufacturing recruitment specialist after it entered administration.

Metalis Engineering Recruitment Limited, based in Rotherham, appointed Steve Currie and Sophie Murcott of business advisory firm CY Group as joint administrators on August 3.

Established in 2019, Metalis provided permanent and temporary recruitment services to engineering and manufacturing businesses across Yorkshire, the North and Midlands.

The company had faced increasingly difficult trading conditions, with slowing recruitment activity and pressure on margins contributing to cash-flow problems.

Despite management taking steps to cut costs and restructure operations, the financial position became unsustainable.

Following their appointment, administrators completed a pre-packaged sale of the business and certain assets to Metalis Recruitment Group Limited for an undisclosed sum.

The deal safeguards all six jobs and allows Metalis to continue supporting customers, with the secured creditor currently expected to be repaid in full.

Steven Currie, joint administrator and managing director of CY Group, said: “Metalis had established a strong position within a specialist recruitment market, but difficult trading conditions and increasing pressure on cash flow had created significant challenges for the business.

“Our priority was to find an outcome that preserved the underlying business, protected employment and delivered the best possible result for creditors.

“We’re pleased to have achieved a sale which safeguards all six jobs, allows the business to continue supporting its customers and is expected to result in the secured creditor being repaid in full.

“It’s a positive outcome in what had become a very difficult set of circumstances and demonstrates the importance of seeking advice early, while there are still options available to protect value.”

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