Headhunter Whitehead Mann is due to announce a £13m rights issue in a bid to end the crisis that has seen its share price slip by 75% over the last six months.

The Financial Times has claimed that Mann needs the funds to strengthen the balance sheet and pay bonuses to headhunters, who are considering defecting.

The news emerged a month after the company announced profits would be £4.5m short of expectations.

A possible takeover by US rivals Korn Ferry and Heidrick & Struggles fell through late last year. Whitehead Mann declined to comment.