A report shows creditors are owed an estimated £4.39m
A number of Tyneside jobs have been saved in the pre-pack sale of recruitment business Zenith People out of administration.
The Hebburn-based firm, a specialist recruiter in the manufacturing, engineering and industrial sectors, encountered difficulties last year amid the collapse of a key customer and after it was refused support from the Redundancy Loan Scheme to help trim its workforce in the face of financial pressure. Zenith had been loss making for two years amid what has been described as a “serious contraction” of its market and increased employment costs.
Following pressure from HMRC, administrators were called in late last year, before the business was marketed and then a sale to director Angela Anderson agreed for £126,000, part of which is payable over several months. The deal safeguards 11 jobs along with about 80 temporary staff.
But documents also show an estimated £4.39m owed to various creditors, including £1.29m owed to the tax authority. The report published by the administrators at Leonard Curtis also shows Zenith People has a deficit of more than £1.1m. It is thought unlikely that unsecured creditors will receive any money.
The insolvency specialists said Zenith People had traded well over many years, expanded its work into other sectors and survived the challenges of the pandemic with support from a CBILS loan and invoice finance facility. However, it struggled in the recovery period afterwards and a series of time-to-pay arrangements were set up with HMRC.
Ms Anderson said: “In light of the challenges being faced by the business, we had to take action to move forward positively. Leonard Curtis helped us to achieve this, giving us newly streamlined operations, with increased efficiency and reduced overheads.
“This has allowed us to create a fully integrated training and recruitment model which is both sustainable and unique in the North East. The new operations have already been well received by current and new clients alike.
“By leveraging funded and non-funded training, combined with recruitment services, we are now able to offer an integrated recruitment, onboarding and retention model, underpinned by HR support, which elevates sales conversations to board level and moves transactional relationships to long term partnerships. Ultimately, this allows us to protect our client base by embedding us into their strategic planning and moves conversations and strike a value-added rather than price- based tone, protecting core business and ensuring long term stability.”
She added: “The support provided by Leonard Curtis during this period has been nothing short of excellent.”
Mincoffs Solicitors acted for the joint administrators at Leonard Curtis, alongside leading receivables management company CRM. Iain Nairn, joint administrator, said: “We are delighted that we have successfully secured the long-term future of the company and its workforce.”




