The £18m deal to acquire Challenge Recruitment Group assets from administration repaid private funders in full
The UK exchequer is chasing about £90m in unpaid taxes after a temporary staffing business was rescued from insolvency proceedings in an £18m deal that reimbursed private funders in full.
The main assets of Challenge Recruitment Group, which counted Tesco, Sainsbury’s and Co-op among its top customers, were acquired from administration in July by the US website swipejobs, in what appears to be the second time the British staffing business has emerged from insolvency while owing tens of millions of pounds to the exchequer.
The levels of debt owed by Challenge to HM Revenue and Customs has emerged as the chancellor, Rachel Reeves, is under pressure to announce tax rises in her autumn budget in order to shore up the public finances.
Swipejobs paid £4.9m as part of a “pre-pack” administration deal for the pick of Challenge’s contracts supplying staff to a series of huge UK brands, as well as £12.7m to the collapsed group’s secured lenders, Close Brothers and Praetura Asset Finance, according to a report by administrators FRP.
