UK Recruitment Business Acquired After Third Insolvency

A UK recruitment business, Sert Group and its subsidiary Sert Training, has been acquired out of administration for the third time in four years, raising concerns about the practice of phoenixism, where companies are liquidated and their directors continue operating under new entities, often free of debts. This latest acquisition by Meraki 6 has left creditors, including HM Revenue and Customs (HMRC), with significant unpaid debts.

The Guardian

Sert Group and Sert Training collapsed in January 2026, with their assets acquired for £196,304 by Meraki 6, an unconnected buyer. The acquisition retained the previous management team, including chief executive Mark Edwards and chief financial officer Ben Knight, who had previously overseen two other iterations of the same business that also went into administration. Research from Tech City Labs indicates that these insolvencies have resulted in creditors being owed approximately £7.6 million, with HMRC owed around £4.5 million.

The Guardian

The history of the Sert businesses reveals a pattern of repeated insolvencies. In February 2022, Edwards and Knight were directors of 3R Global, which collapsed and was subsequently acquired by Sert Workforce Solutions for £60,000. Sert Workforce Solutions itself entered administration in October 2024, leading to its assets being sold to Sert Training for £50,000 and a share of future profits. Sert Training lasted only 15 months before its own administration.

The Guardian

Lawyers for Meraki 6 assert that their acquisition does not constitute phoenixism, as there are no common directors between the new entity and the previous owners. They argue that the deal has preserved jobs and that Meraki was unaware of the prior insolvencies. Following the acquisition, Edwards was listed as the chief executive but is reportedly on gardening leave, while Knight remains with the company as chief financial officer, although he is no longer a statutory director or shareholder.

The Guardian

Critics of the situation highlight the implications of phoenixism, which HMRC estimates cost the exchequer about 22% of the £3.8 billion in tax losses reported for the fiscal year 2022-2023. The repeated insolvencies in the staffing sector, including the recent case of Premier Group Recruitment, which went bankrupt owing nearly £3 million only to be repurchased by its former owner, raise questions about the accountability of directors and the protection of creditors.

The Guardian

While Meraki 6 maintains that it is not connected to the previous Sert owners, the retention of Edwards and Knight in key roles raises concerns about the continuity of management practices that led to prior insolvencies. There is a lack of transparency regarding the extent of knowledge Meraki had about the previous administrations.

The Guardian

• “Following these discussions, it was confirmed by [Sert] management that they would only work with the purchaser.” — Administrator’s report

The Guardian

• “They added their client’s deal had saved jobs, and it was unaware of the business’s previous insolvencies.” — Lawyers for Meraki 6

The Guardian

This situation underscores ongoing issues within the UK recruitment sector, particularly regarding the legal and ethical implications of phoenixism and the protection of creditors in cases of repeated business failures.

The Guardian