Extrastaff Recruitment, the Adelaide-based recruiting company that went into administration in October, has been given new life after being bought out by the NSW Business Chamber’s recruitment services division, Australian Business Talent.
A public notice was given on Monday by Rob Kirman, the appointed administrator from McGrathNicol, saying the shell of Extrastaff had been voluntarily placed into liquidation following the sell-off of its assets.
Kirman told SmartCompany the decision was made at the second meeting of the creditors on 21 November.
“There was no deed of company arrangement proposed and so then the company proceeded to go into liquidation.
“In terms of the outcome being a fail of the business, that’s not for me to speculate… but customers get ongoing supply and employees receive ongoing support… That’s the key objective – to save the company,” he said.
NSW Business Chamber chief Stephen Cartwright said while the terms of the acquisition were confidential, the decision at the creditors’ meeting to sell off the assets of the company made it possible for Extrastaff to make a fresh start.
“Extrastaff is now operating successfully and is growing once again under its new ownership,” he said.
According to its website, Extrastaff Recruitment has offices in Adelaide, Mawson Lakes, Marion, Brisbane, North Sydney, Albury and Melbourne. It sold its New Zealand business in August.
The company had been acquired by former RCSA South Australia president Beryl Rowan from Slade Personnel in 1990, and was sold to Rowan’s sons Declan and Piers Rowan in 2005.
When Declan Rowan spoke with SmartCompany two years ago as managing director, he said though the recruitment industry had been hit hard during the GFC, with talk of 30% of the industry wiped out, Extrastaff had managed to remain profitable through the downturn.
An IBISWorld report into the recruitment industry last year indicated growth in the employment placement services industry would strengthen in 2011-12, due to Australia's strong economy and relatively low unemployment.
However, IBISWorld told Smart Company overall "this remains a relatively low-margin industry due to its highly competitive nature."
It is understood high levels of industry competition placed pressure on Extrastaff in recent years.
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