Government and corporate recruitment specialist Recruiters Australia appointed KPMG as voluntary administrator last Friday, after a less than upbeat third-quarter report.
In an announcement that slipped on to the Australian Stock Exchange site just after 6pm last Friday, Recruiters Australia said its various operating businesses will be sold as going concerns, either as individual business units or in one transaction.
The company has terminated a total of more than 20 staff from each of the business units in order to reduce operating expenses by approximately $2.5 million annually.
Managing director Phil Powell said that due to financial problems there was a chance the company may be insolvent over the next few weeks. In light of this, the company decided to appoint an administrator.
The board is also looking to sell the Watermark International Consulting subsidiary business in NSW to its senior staff.
Recruiters Australia will continue to trade while the appointed administrator, Scott Kershaw of KPMG, looks over its businesses and its subsidiaries, Watermark International and Olmec.
There are five divisions under the Recruiters Australia umbrella, including Recruiters Australia Limited, Industrial Recruiters Australia and Recruiters Australia Operations. Siobhan Chapman is a journalist with The Industry Standard