Recruit IT is completing due diligence on Agility Group and Agility Group Wellington, with the intention of buying the recruitment firm, which was put into receivership last month.
John Wyatt, one of RecruitIT’s three directors, says terms of sale have been agreed and a contract has been signed “for the bulk of Agility’s business”.
He says “it is Recruit IT’s intention that existing contracts will immediately transfer to Recruit IT, but on agreed contractor/client and Recruit IT terms, which will offer added protection for the contractors.
“The majority of contractors and clients we have spoken with are in agreement with what we have proposed,” he says.
He says a further announcement will be made once due diligence is complete.
Agility was placed in receivership on January 28. At the time, receiver Tim Downes of Grant Thornton said contractors would be paid by the receivers from the time of the receivership onwards.
As to payment for work done before that, contractors would rank behind the BNZ and other secured creditors.
Computerworld understands that at the time of the receivership, some contractors hadn’t been paid since December.
One Agility contractor, who wants to remain anonymous, says he can’t understand how Agility could have needed to be placed in receivership.
In terms of risk exposure, Agility’s business model was “very low” he says, “since most of the clients paid Agility before Agility was paying contractors”.