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Haybrook/SQCP in liquidation

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    Haybrook/SQCP in liquidation

    This recruitment agency is currently going through Liquidation with the Contractors' unpaid invoices going down with it. The strange thing is that the CEO or one of the Directors just set up a new recruitment company. Do you guys think this is ethical?

    #2
    It is very familiar that Directors will lose the company debt through liquidation and straight away start up a similar business. Its not strange but common in many sectors - especially where barriers to entry are low.

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      #3
      He's got the knowledge of how it all works, knows what can go wrong and the databases of the dying company. Get rid of his old company and it's mistakes and start with a clean sheet. Why wouldn't he?

      It would be unethical if he just used the old one to rack up debts but line his pocket and he's just going to start again. If there were factors outside his control that pushed his first company under then of course you'd give it another stab.

      Depends on the reasons I guess.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #4
        What stops all other recruitment agency directors from adopting these sharp practices and getting away with it. This one currently has a residential development to his name. It is a shame as I know a lot of contractors impacted.

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          #5
          Originally posted by newmove View Post
          What stops all other recruitment agency directors from adopting these sharp practices and getting away with it. This one currently has a residential development to his name. It is a shame as I know a lot of contractors impacted.
          Then there will be a good story to tell when contractors perform their due diligence of that recruitment agency in future, won't there?
          "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
          - Voltaire/Benjamin Franklin/Anne Frank...

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            #6
            I worked through this outfit a lot back in the day.
            They were alright back then, never had an issue.
            Never had the top man down for a fly by nighter.
            I think something serious has happened to business.
            My first guess would be a client going bust with quite a backlog of aged debt to SQCP.
            Directors pheonixing unfortunately happens all the time. Not a lot you can do unless fraud or similar illegals can be proven. I have seen contractors use pheonixing too.
            Lots of recruitment agencies have used this trick in the past. Its nothing new for the sector.



            Former IPSE member
            My Website

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              #7
              Clients should change the nature of the service so that the client pays the contractor directly and then agency gets it's cut from contractor. It should be a more honest relationship. Also it would put an end to the many games in the business.

              The way the agency intermediate the contract and keep control of the business it's old fashion and a proliferation of the "old boys club".

              The payment management is nonsense especially in these times when everything is digitalised. And I would not mind a long waiting time if the client is solvent. Not a thing that you could say about many agencies atm. Especially today.

              What would stop an agency with small overhead and rogue practices declaring bankruptcy while syphoning fees for 1-2months from 100-200-300 contractors? Nothing.

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                #8
                Yeah nothing to stop anyone doing this. Companies house will show liquidated or dissolved companies against their name. Some may do on purpose some a circumstance of business. But I have also seen some directors use different variations of their name so companies are not clearly linked.

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                  #9
                  What an absolute shyster considering I have over £30k invoices going down with it.

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                    #10
                    Originally posted by newmove View Post
                    What an absolute shyster considering I have over £30k invoices going down with it.
                    I don't suppose you have IPSE membership?

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