Heywood Associates, the London-based recruitment to recruitment firm, has applied to go into liquidation.

Simon Gee, managing director, said the firm planned to restructure and create two new firms, Heywood Search and Heywood Recruitment.

Information from Companies House revealed the firm obtained a Corporate Voluntary Agreement earlier in the year. This means it had agreed to stay trading in order to pay back money to its creditors.

Gee told Recruiter: “We are going to form two new companies and are going to offer some of our staff equity in the two new organisations.”

He had previously denied rumours that the company was going to go out of business but admitted that he had already made one member of staff redundant.

He said: “I am still here and still working and I expect to get paid at the end of the month.”

Recruiter understands that Heywood reneged on a decision to hire a new member of staff at the end of October.

Insolvency practitioner Griffin said a liquidation hearing was scheduled for 19 November at its offices in London’s Russell Square.