Clearstone Training and Recruitment has gone into administration, just months after being saved by private equity firm RCapital.

The lorry driver training and recruitment firm was bought out of administration by RCapital in July last year. It then invested more than £1.25m in the business. However, the losses, although reduced, still continued.

When the directors reviewed the company's financial position in January it was estimated that a further £3m plus would be required to ensure financial stability and the directors realised that they would be unable to raise this level of funds.

A statement on Clearstone's website said: "The company has ceased to trade following a review of its financial position. The directors have been advised that in the absence of future funding commitments, it could not carry on trading."

A helpline has been set up to provide advice to Clearstone customers that have pre-booked training courses, costing more than £1,000, in the coming months.

Geoff Kinlan, business restructuring partner at accountancy firm BDO Stoy Hayward, said: "Trading has ceased in the training division and all staff have been made redundant.

"Efforts are now being made to try and find a buyer for the recruitment side of the business."

Clearstone hit the headline at the end of October 2007 when it made several big-name appointments in the form of former group managing director of Hays John Cole and managing director of Office Angels Paul Jacobs.

During Jacobs' tenure, the company embarked on a high-profile advertising campaign to get people to take up lorry driving as a career and also opened its first regional driver training centre in Milton Keynes in September.

As Recruiter went to press RCapital and Jacobs were unavailable to comment.