Architectural recruitment agency Adrem has been ‘reborn’ just days after slipping into administration
Earlier this week Malcolm Scott, who founded the agency 28 years ago, and company managing director Del Hossain bought back the business assets from the administrators and will now trade under the Adrem Group banner.
The outfit blamed bad debts in the UK and Gulf as well as practices failing to pay up for its difficulties and has vowed to keep a tighter ship to avoid a similar issues recurring.
Managing director Hossain said: ‘Our problem was that we were regularly paying staff off against our own borrowings at the end of each week but some practices weren’t able to pay us for months later, if at all.
‘We will have to be stricter about payment schedules to maintain a positive cashflow in future.’
He added: ‘We have obviously been affected by the same issues as those facing practices throughout the country but have endeavoured to ensure that as many suppliers as possible are unaffected.
‘Our commitment to the sector is undiminished, as this is our community, the fact that we put our own personal assets on the line to support the new business reflects that commitment.’
The news that Adrem had gone into administration last week came as a shock to many within the industry (see story below).
Previous story (AJ 05.02.2010)
Shock as jobs agency Adrem plunges into administration
Architecture and design recruitment agency Adrem has gone into administration
The Clerkenwell-based recruiters appointed Harrisons business recovery and insolvency specialists on Monday (1 February).
The 25-year-old specialist firm was hit by the declining job market and failure of firms to pay their bills.
Lindsay Urquhart, owner of recruitment consultancy Bespoke Careers said she was surprised by the news: ‘The timing does seem strange. Things are a lot better than they were this time last year. We have twice as many on contacts and we’ve got jobs and we need people.
She added: ‘Between October 2008 and March 2009 [the market] was like falling off a cliff. But since April 2009 the numbers of jobs have been increasing.’
Meanwhile Alastair Rigden of Solution Recruitment said: ‘It’s the sign of the market and the times – strong relationships are needed in this current climate.’
Rigden said of the architecture recruitment market in general that the ‘decision making process is very, very slow nowadays, and people [are] paying slowly too.’
Del Hossain, managing director of Adrem recruitment was unavailable to comment.