News: Pre-pack deal for specialist Rotherham recruitment firm
A pre-pack deal has been secured for Rotherham-based specialist engineering and manufacturing recruitment business after it entered administration.
Metalis Engineering Recruitment Limited was established in 2019 and provided specialist recruitment services to the engineering and manufacturing sectors, supporting businesses across Yorkshire, the North of England and the Midlands with permanent and temporary recruitment solutions.
The Templeborough company faced increasingly challenging trading conditions, with a slowdown in recruitment activity and continued pressure on margins contributing to significant cash-flow difficulties. Despite steps taken by management to reduce costs and restructure the business, its financial position ultimately became unsustainable, and advice was sought from CY Group.
Steve Currie and Sophie Murcott of business advisory firm CY Group were appointed Joint Administrators of the Rotherham-based company on August 3 2026.
A report from the administrators states that the company's difficulties began in late 2024 with the deterioration in market conditions. It pointed to wider economic pressure, the adoption of inhouse hiring tools by clients and increased competition from smaller agencies and independent recruiters. Late payments from a key client and a dispute with software providers were also cited.
Following COVID, demand recovered strongly and the business grew steadily for around four years. At its peak the Company employed 28 staff across two offices.
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The Joint Administrators completed a pre-packaged sale of the business and certain assets to Metalis Recruitment Group Limited, a connected company, for an undisclosed sum.
The transaction secures the future of the business and safeguards all six jobs, enabling Metalis to continue trading and supporting its customers. The sale also represents a positive outcome for creditors, with the secured creditor currently expected to be repaid in full.
Steven Currie, Joint Administrator and Managing Director of CY Group, said: “Metalis had established a strong position within a specialist recruitment market, but challenging trading conditions and increasing pressure on cash flow had created significant difficulties for the business.
“Our priority was to preserve the underlying business, protect employment and achieve the best possible outcome for creditors.
“We are pleased to have completed a sale that safeguards all six jobs, enables the business to continue supporting its customers and is expected to result in the secured creditor being repaid in full.
“This is a positive outcome in what had become a very challenging set of circumstances and demonstrates the importance of seeking professional advice at an early stage, when there may still be options available to preserve value and protect jobs.”
The business will continue to trade under Metalis Recruitment Group Limited following completion of the sale.
Metalis website
Images: Metalis
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Metalis Engineering Recruitment Limited was established in 2019 and provided specialist recruitment services to the engineering and manufacturing sectors, supporting businesses across Yorkshire, the North of England and the Midlands with permanent and temporary recruitment solutions.
The Templeborough company faced increasingly challenging trading conditions, with a slowdown in recruitment activity and continued pressure on margins contributing to significant cash-flow difficulties. Despite steps taken by management to reduce costs and restructure the business, its financial position ultimately became unsustainable, and advice was sought from CY Group.
Steve Currie and Sophie Murcott of business advisory firm CY Group were appointed Joint Administrators of the Rotherham-based company on August 3 2026.
A report from the administrators states that the company's difficulties began in late 2024 with the deterioration in market conditions. It pointed to wider economic pressure, the adoption of inhouse hiring tools by clients and increased competition from smaller agencies and independent recruiters. Late payments from a key client and a dispute with software providers were also cited.
Following COVID, demand recovered strongly and the business grew steadily for around four years. At its peak the Company employed 28 staff across two offices.
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The Joint Administrators completed a pre-packaged sale of the business and certain assets to Metalis Recruitment Group Limited, a connected company, for an undisclosed sum.
The transaction secures the future of the business and safeguards all six jobs, enabling Metalis to continue trading and supporting its customers. The sale also represents a positive outcome for creditors, with the secured creditor currently expected to be repaid in full.
Steven Currie, Joint Administrator and Managing Director of CY Group, said: “Metalis had established a strong position within a specialist recruitment market, but challenging trading conditions and increasing pressure on cash flow had created significant difficulties for the business.
“Our priority was to preserve the underlying business, protect employment and achieve the best possible outcome for creditors.
“We are pleased to have completed a sale that safeguards all six jobs, enables the business to continue supporting its customers and is expected to result in the secured creditor being repaid in full.
“This is a positive outcome in what had become a very challenging set of circumstances and demonstrates the importance of seeking professional advice at an early stage, when there may still be options available to preserve value and protect jobs.”
The business will continue to trade under Metalis Recruitment Group Limited following completion of the sale.
Metalis website
Images: Metalis
