About 38 contractors working for IT recruitment company Agility Group are unlikely to be paid what they're owed, following the failure of the company.
Once ranked in the Deloitte Fast 50 list of the country's fastest growing businesses, Agility went into receivership last week. It had branches inAuckland and Wellington.
Receiver Tim Downes of Grant Thornton said there was likely to be a shortfall in funds owed to the company's bankers, and because the contractors were unsecured creditors they were unlikely to get anything.
"The bitter pill for them is while the work that they have done is billable by Agility right up to the time of receivership ... that's an asset of the company in receivership." However Downes said he had given them his guarantee that they would be paid for any work post-receivership.
The receivers hoped to hold Agility's contracts together in order to sell them, and were having conversations with contractors to encourage them to stay on.
There was a potential buyer in the wings, subject to that buyer being satisfied the contracts were in place.
Downes did not believe Agility had failed because of tougher economic times. "I think they just grew too fast."
Four permanent staff have been affected by the collapse.
