A healthcare agency is embroiled in a legal dispute amid allegations that a competitor tried to poach candidates by using smear tactics.

The Locum Partnership says that London-based Sugarman Medical sent out text messages to candidates warning about Locum’s “current situation”.

Candidates who then contacted Sugarman were told that Locum was on the verge of bankruptcy, the Essex-based recruitment firm claims.

Mike Aunger, a locum healthcare worker on the books of both firms, claimed that he received a text message from Sugarman.

The message reportedly said: “Do you currently work through The Locum Partnership? Due to there current situation we will be happy to support and advise you. Call Sugarman’s…”

The message then listed Sugarman’s phone number.

Aunger told Recruiter: “I rang up Sugarman and was told that The Locum Partnership was going bankrupt and that I should come to them for business.”

Sugarman denied the claims, and in a fax sent to The Locum Partnership by the firm’s solicitors, Marshall Ross & Prevezer, the City agency argues that the words “current situation” refer to The Locum Partnership not being one of the 29 accredited agencies selected by the NHS Purchasing and Supply Agency.

Now, The Locum Partnership wants a headed letter from Sugarman to be sent out to reassure candidates, and compensation for the time and money spent by the Essex agency to prove to more than 100 locums that it is indeed still in business.

Andy Socrates, a Locum Partnership director, said: “It’s not about the money. We would happily give that to charity. “I’m just astonished… that someone can so blatantly target us.”

Sugarman Medical refused to comment to Recruiter.

The dispute is further indication of a staffing crisis caused by a shortage of healthcare workers.

Recruiter recently investigated Eurosite Medical over a dubious job advert it posted on a classifieds website, which it then removed.