BNB Recruitment Consultancy (BNBRC), the wholly owned subsidiary of Garner, has gone into liquidation.

In a statement issued to the Stock Exchange, Garner says: “It was agreed that there is no realistic prospect of BNBRC paying its debts, and accordingly there is no alternative but to take the necessary steps to place the subsidiary into creditors’ voluntary liquidation.”

According to the statement, BNBRC has net current liabilities of roughly £1.6m, including £879,000 to HM Revenue & Customs and £742,000 owed to other Garner group companies.

“The employees of BNBRC were transferred to another subsidiary of the Garner group of companies,” the statement continues.

Garner says that trading within BNBRC in 2009 was worse than anticipated. However, it says that the Garner group of companies as a whole has made a promising start to 2010, and is trading profitably at the pre-tax level in the first quarter of the year.

Andrew Garner, chief executive of Garner, told Recruiterthat the board had reached agreement in principle to reduce the total consideration payable to the liquidators of BNB Recruitment Solutions, the holding company from whom Garner bought BNBRC in 2008.