Following the bankruptcy of Martho Flexwerk Agrarisch B.V. and Martho Personeelsdiensten B.V. last month, a restart was quickly realized. There was strong interest in the companies, and the highest bidder, Cervo Noord, realized a restart together with Workstead. So says the first bankruptcy report, which also reveals more about the background to the bankruptcy of the Emmeloord-based temporary employment agency.
Relaunch
Cervo will focus primarily on its temporary staffing activities and Workstead will provide accommodation for EU employees of the Emmeloord-based temporary staffing agency.
Both Cervo Group and Workstead are nationwide staffing agencies specializing in supplying EU workers. Both companies say they are working together 'to secure and further expand Martho's trusted services.' Cervo Noord already had head offices in Arnhem, Waalwijk, and Bunschoten and will add the Emmeloord branch. The company already operates in the food & production sector, according to its website. It does not (yet) have the 'agricultural sector' branch.
For Cervo Group, this is 'a nice expansion of activities in North-East Netherlands', according to a recent report on the takeover. For Workstead, the acquisition means a strengthening of its national position with expansion of customers and accommodation locations.
Some 20 parties requested access to Martho's business details from the receiver. Several offers were made. A party already involved in the company was interested in a relaunch when the bankruptcy was declared on 13 June. This party also made an offer to the trustee on the day after the bankruptcy for that purpose. The trustee also entered into discussions with this party. The restart was officially achieved on 26 June with Cervo Group and Workstead.
Cause of bankruptcy
The trustee, Mr. D. Steffens from Utrecht, is investigating the causes of the bankruptcy. The bankruptcy report does already reveal the causes cited by the company's directors for the bankruptcy.
Originally, Martho was mainly focused on staffing in the agricultural sector in the northern Netherlands. To be less dependent on the seasons, at some point, the industrial market (food sector and fish industry) in the region was also tapped. To become known there, costs were incurred for marketing and acquisition, among other things.
Martho Flexwerk Agrarisch continued to serve agricultural clients. Martho Personeelsdiensten started focusing on industrial customers. The Covid period caused a 'substantial decline in staffing hours,' 'poorly paying debtors' because Covid problems were also present there, and 'narrowing margins.'
After Covid, an increase in agency hours was expected, and the focus was on margin improvement. As the agricultural sector went through a 'difficult' season, including drought and also the energy crisis in the greenhouse sector, this was disappointing. Staff cuts at agricultural companies continued. As a result, the expected increase in agency hours did not materialize. The increase "proved insufficient," the directors stated in the report. The industrial sector also struggled with cost increases and inflation.
Internally, the staffing company also struggled. Since February/March 2023, it has been looking for a collaboration partner 'to spread costs, improve margins and bring in expertise.' It became clear in early June that that was not going to work out. The subsequent conclusion was that the business group was not viable in the 'current market conditions.' Bankruptcy was then filed.
At the time of the bankruptcy, 301 people worked at the staffing group, including 27 staff. A year before the bankruptcy, 530 people were still employed, mainly in the Personnel Services branch. There, staffing levels shrank by almost half in the past year.
According to Henry Stroek of the CNV trade union, the Emmeloord temporary employment agency had been involved in many civil and criminal cases in recent years. The director also stepped down suddenly a few weeks ago, the director told Omroep Flevoland recently. He was not sad that the company 'went off the market.'
In the first month after the bankruptcy, 30 unsecured creditors came forward to the receiver, accounting for €170,000.
Utrecht-based Mr. D. Steffens was appointed as trustee. The bankruptcy, pronounced on 13 June, is registered under reference 16.mne.23.228.F.1300.1.23.