Administrators move in to save Prosperity4

22-Aug-2007

PAYE umbrella company Prosperity4 has gone into administration. The company appointed Chantrey Vellacott DFK as joint administrators on 1 August.

A statement on Prosperity4's website said: "The purpose of the administration is the survival of the company, and it is continuing to trade to achieve this purpose."

The company says it is 'business as usual' and that in the two weeks after going into administration, it has paid out £495,000 in wages to contractors.

However, in a letter to recruitment agencies, the joint administrators said it was "essential that amounts due to the company are paid in a timely fashion to ensure that sufficient funds are available to continue to pay the employees".

Prior to going into administration, Prosperity4 had around 2,000 contractors on its books. The administrators told Recruiter that "the majority of the contractors have been extremely supportive and have committed to continue working for the company".

The company operates in traditional contracting areas such as IT, engineering, finance and medical, although not in the construction sector. It employs around 70 staff.