Three recruitment companies that count both small and large companies among their clients have been placed in voluntary administration amid a corporate restructure by their parent company.
The companies are all subsidiaries of Rubicor Group, one of Australia’s largest recruitment companies, which is listed on the Australian Securities Exchange.
Rubicor was founded in 2005 and currently operates 15 specialist brands in the human resources and recruitment areas.
Administrators from Jirsch Sutherland were appointed to manage Xpand Group Pty Ltd, Locher & Associates Pty Ltd, Challenge Recruitment Pty Ltd on July 4, with Sule Arnautovic, Glenn Crisp and Chris Baskerville appointed to the companies.
Xpand Group specialises in recruitment and executive searches in technology, media and communications, while Locher offers people performance services. Challenge Recruitment operates in the industrial trades, blue collar, call centres, office recruitment and government areas.
Baskerville confirmed to SmartCompany this morning the three companies are continuing to trade and are expected to continue doing so throughout the voluntary administration.
“The directors are likely to finalise a proposal for a Deed of Company Arrangement [DOCA] shortly, which is expected to be presented in our report to creditors, currently scheduled for 29 July,” Baskerville says.
“We believe employees’ positions are secure and the companies have the ongoing support of customers into the future.
“The companies (and the administrators) also have the support of the major financier to the company.”
Together the three companies employ more than 1,800 temporary and permanent employees.
Arnautovic, Crisp and Baskerville have also been appointed to a fourth entity, a company formerly known as Gel Group Pty Ltd, however that company does not trade or employ staff.
In a statement to shareholders on July 4, Rubicor Group said the voluntary administrations are a step towards “the full restructure of the [Rubicor] Group”.
Rubicor said in the statement its remaining operations are not affected by the restructure.
The company outlined its places to propose a DOCA to the creditors of the three companies in voluntary administration and said assuming the arrangement is accepted, “the subsidiaries will then be returned to control of their respective directors”.
“When the restructure is completed, the directors expect the group to be in a position to take advantage of growth opportunities,” the company said.
For the 2015 financial year, Rubicor Group reported revenue of $204.3 million, which was up by 3.2% on the year before, and underlying gross profit of $37.7 million, up by 1.6% on the year before.