Agent gone bust

[perplexed]

Not if they have cash reserves as protection, rather than company drained of cash. Take one example, 15 contractors on one site = commission of minimum £75 a day = over £280,000 a year. Easy money, especially if those contractors are onsite for lenghty periods, and very easy to build a cash position to protect from potentially non-paying clients

And if they've hit that bottom line by giving agents large commission deals? Spent on flash company cars? Maybe invested in things that failed?

It's easy to say what a well run recruitment firm would do as best practise. We're not dealing with a well run recruitment firm though, are we?

[brazenhussy]

Goodbye Pendragon, hello Fuse. Not.

Pendragon director Marc Allen and fellow dragon Rob Holden, having sunk that contracting business, are now involved with a new agency Fuse - part of RSG aka Sandersons.

I was a contractor with Pendragon when they went into liquidation this week, and stand to loose a fair whack. I have just been offered a take-over contract from Sandersons starting this week under the new company name of Fuse, which they failed to make clear to me was associated with Marc Allen.

I heard that Pendragon's contractors books were sold to Sandersons, and you can guess that Allen's conditions were that Sandersons mopped up the Pendragon refugees under a new subsidiary which employed our old friends Allen and Holden - et voila, Fuse!

I don't much like the duplicitous and morally questionable smell of all this, so I have told Sandersons I will work via Fuse provided I get a legally binding written agreement from them that, once liquidation dividends are distributed, they make-up any shortfall in lost income for the unpaid period leading up to liquidation, thus forcing Allen to make good on his poor management.
I would encourage you to do the same if this affects you.

If you are in the same position, I urge you to really consider what is going on here (you might want to check the details) and whether you are happy to continue being associated with Allen given the suffering his company might have caused you? Personally I just can't stomach it - despite the financial imperative, given that I aint been paid for quite some time....

[Darren_Test]

Well..in this case it does not looks to be a client payment issue as Pendragon mainly work with public sector right..??

The only other big cost I could see is Lap dance club fees paid for hiring managers...!!

[perplexed]

Well..in this case it does not looks to be a client payment issue as Pendragon mainly work with public sector right..??

The only other big cost I could see is Lap dance club fees paid for hiring managers...!!

Public sector generally good payers. Where the Met Office stepped in to pay contractors directly for a period as agreed with Pendragon, payments have been prompt.

All I can say is that there's enough will amongst contractors here to really push on this, not roll over and die.

[0mega]

Download the last set of Pendragon accounts from Companies House. They'd been trading as a 'going concern' for a long time, the chartered accountant had written of his serious concerns which they'd addressed by replanning their strategy by way of (and they literally say this!!) squeezing clients and suppliers for more profit.

The accounts list lots of healthy dividend payments, large directors loans and eye watering amounts of debt, all conveniently offset against trade accounts; money taken from end clients and destined for eventual payment to contractors.

It's hard to know how anyone can fail to make money when they have access to supply within the DV market, especially so given that most contracts issued Pendragon did not include any factoring, so there was very little financial risk involved.

They also appear to have several 'Pendragon' names registered but unutilised, which means they will probably be up and running again within a few months. Shall we all wish them luck?

[perplexed]

Download the last set of Pendragon accounts from Companies House. They'd been trading as a 'going concern' for a long time, the chartered accountant had written of his serious concerns which they'd addressed by replanning their strategy by way of (and they literally say this!!) squeezing clients and suppliers for more profit.

The accounts list lots of healthy dividend payments, large directors loans and eye watering amounts of debt, all conveniently offset against trade accounts; money taken from end clients and destined for eventual payment to contractors.

It's hard to know how anyone can fail to make money when they have access to supply within the DV market, especially so given that most contracts issued Pendragon did not include any factoring, so there was very little financial risk involved.

They also appear to have several 'Pendragon' names registered but unutilised, which means they will probably be up and running again within a few months. Shall we all wish them luck?

They are up and running again, albeit not called Pendragon. Currently referring to new company as Fuse Group / Fuse Limited.

[Not So Wise]

I am yet to understand how can agency can go burst..? I can see RBS & Lloyds investing in US & going burst..But only cost to agency is paying peanuts to pimp-recruitment agents. I believe most of them work commission basis. So if no contract not to pay big salary as well. So how can they go burst..? Unless they invest in Dubai properties..??

Most common way is client's not paying or paying so late that banks are calling in agents credit line

Other way is when they start branching out into other lines of business that drag whole company down, for example, one I had go bust under me went into IT equipment rental

[SuperZ]

All I can say is that there's enough will amongst contractors here to really push on this, not roll over and die.

Good to hear!
I know I would be kicking up a real stink. Good luck!

It's easy to say what a well run recruitment firm would do as best practise. We're not dealing with a well run recruitment firm though, are we?

Exactly!


Good info Omega

[RichardCranium]

Can't say they don't deserve it and I cannot personally feel sorry for their employees either (ie, RC aware of their practices, could have jumped ship to a better agency with integrity and ethics a higher priority than greed and lies).

"a better agency"

"with integrity"

"and ethics" Oh, no stoppit, my chest is hurting!

"a higher priority than greed and lies" Damn. I've pissed myself.

[tim123]

As one of those affected at the Met Office, I've little doubt lying incompetents were by their lying and incompetent ways ignoring their duty to protect creditor's interests.

Should the IP find so, then I'm all for giving Maxine, ex hubby Marc ( a former stockbroker ) et al the time of their lives - they'd then be potentially personally liable for debts, surely?

Only if they can be shown to have traded whilst insolvent. They have a limited company for exactly the same reason you do.

tim