Key Points
- A Hampshire-based recruitment firm, Sert Group and Sert Training, has emerged from administration for the third time in four years, leaving creditors with £7.6 million in losses, including £4.5 million owed to HMRC.
- The latest acquisition occurred on 20 January 2026, when Meraki 6, an entity owned by Meraki Capital Group, purchased the businesses for £196,304, requiring existing management, including CEO Mark Edwards and CFO Ben Knight, to remain.
- Previous insolvencies involved 3R Global, taken over by Sertforce Solutions for £60,000 on 2 February, and Sertforce Solutions, sold to Sert Training for £50,000 plus 7.5% of future profits in October 2024.
- Legal representatives for Meraki 6 stated that the acquisition does not represent phoenixism, as Meraki is unrelated to prior owners, shares no directors, preserved jobs, and they were unaware of earlier insolvencies.
- Edwards was listed as CEO post-acquisition but announced as departing on gardening leave; Knight remains CFO, though no longer a statutory director or shareholder according to Meraki.
- Neither Edwards nor Knight commented on the administrations.
- This case highlights “phoenixism,” where companies dissolve and directors restart anew, costing taxpayers about £800m annually, or 22% of £3.8 billion tax losses in 2022-2023.
- Similar cases include Premier Group Recruitment, which collapsed owing nearly £3 million including £647,000 to HMRC, then reacquired by former owner Andrew Woosnam for £10,000 and announced a Las Vegas staff trip.
- Challenge Recruitment Group rescued for £18m by swipejobs, leaving £90m unpaid taxes to HMRC after second collapse; brothers Richard and Thomas Cropper retained on consultancy.
- HMRC spokesperson noted government action to tackle phoenixism via better collaboration with Companies House and Insolvency Service, as announced by Chancellor Rachel Reeves.
- KR8 Advisory’s Matthew Mills commented on the Sert sale: “The sale to Meraki Capital presents a great opportunity to continue to grow the SERT Group business, furthering its mission to provide best-in-class services and training”.
A Hampshire recruitment firm has risen from administration for the third time in four years through a transaction that shielded it from £7.6 million in creditor losses, including £4.5 million in tax debts to HMRC, spotlighting ongoing concerns over phoenixism in the staffing sector. The businesses, Sert Group and Sert Training, were sold for £196,304 to Meraki 6 on 20 January 2026, with the deal stipulating continuity of the existing management team comprising CEO Mark Edwards and CFO Ben Knight, both involved in prior iterations. This pattern mirrors a wave of similar insolvencies costing UK taxpayers hundreds of millions annually.
What is the Latest Insolvency of Sert Group?
Sert Group and Sert Training entered administration in January 2026 amid financial pressures, as detailed in the administrator’s report. The firms, specialising in engineering services and training for sectors like battery storage, renewables, heating, EV charging, and solar, were acquired by an unrelated buyer, Meraki 6, owned by Meraki Capital Group. KR8 Advisory, led by Matthew Mills and Jimmy Saunders, marketed the assets thoroughly before the sale on 20 January 2026, preserving all direct staff and contractors’ jobs and maintaining contracts with blue-chip UK clients.
As reported by journalists at The Guardian, the deal required the incumbent management to stay in place, including Mark Edwards as CEO and Ben Knight as CFO, who had directed two previous company versions through administration. Research by Tech City Labs estimates the three collapses left £7.6 million unpaid to creditors, with £4.5 million to HMRC.
What Happened in Sert’s Previous Insolvencies?
The sequence began with 3R Global entering administration, its assets bought by Sertforce Solutions for £60,000 on 2 February, under directors Edwards and Knight. Sertforce Solutions then collapsed in October 2024, with assets sold to Sert Training for £50,000 and a 7.5% share of future profits. These transactions allowed operations to continue seamlessly despite mounting debts.
Neither Mark Edwards nor Ben Knight provided comments to The Guardian regarding these prior administrations. Post the latest deal, Edwards remained CEO and job contact but is now on gardening leave and departing, while a colleague confirmed Knight as ongoing CFO; Meraki clarified Knight is no longer a statutory director or shareholder.
Is This an Example of Phoenixism?
Phoenixism involves dissolving a company so directors can relaunch under a new name, shedding debts legally, costing HMRC £800m-£836m yearly, per their estimates representing 22% of £3.8 billion tax losses in 2022-2023. The Guardian highlighted Sert as exemplifying this in staffing, alongside others.
Legal representatives for Meraki 6 argued to The Guardian that it is not phoenixism, stating: “their client’s transaction preserved jobs and that they were unaware of the business’s earlier insolvencies” as Meraki links not to prior Sert owners and shares no directors.
What is the Government’s Response to Phoenixism?
An HMRC spokesperson said, as reported in multiple outlets including The Guardian and BM Magazine: “As the chancellor announced in her spring statement, the government is taking action to improve collaboration between HMRC, Companies House and the Insolvency Service to tackle those using contrived corporate insolvencies and dissolutions — so-called ‘phoenixism’ — to evade tax”.
This follows pressure on Chancellor Rachel Reeves amid a £40bn fiscal gap, with business groups warning against tax hikes stifling growth. HMRC pursuits continue, as in Challenge Recruitment’s £90m case.
What are Similar Cases in Recruitment?
Premier Group Recruitment collapsed in September 2025 owing £2.9 million, including £647,000 to HMRC, per The Guardian and Winding Up Petition Solicitors. Former owner Andrew Woosnam reacquired assets for £10,000 initial sum, then announced an all-expenses-paid Las Vegas trip for staff in February 2026. Annual reports showed £1.95 million dividends to shareholders in 2022-2023.
Challenge Recruitment Group, serving Tesco, Sainsbury’s, Co-op, Amazon, collapsed twice; second time assets sold for £18m to US firm swipejobs in July 2025, repaying private funders fully but leaving £90m taxes (£34m from four companies, £56m from TLR White Trading). Directors Richard and Thomas Cropper, who sold 75% to an employee trust in October 2024, retained six-month consultancies. Previously as IF Trade Co in 2022, owed another £34m.
Louise Gracia from Warwick Business School warned to SSB Crack News that phoenixism gives unfair advantages, doubting full tax recovery.
Why Does Phoenixism Matter to Taxpayers and Businesses?
HMRC data shows phoenixism drove £836m losses recently. LinkedIn posts by Dave Chaplin and Alexander Lyons note it burdens honest firms and public services. Sheridan Maine highlighted rising demand for compliance accountants.
Matthew Mills of KR8 Advisory stated on the Sert deal: “The sale to Meraki Capital presents a great opportunity to continue to grow the SERT Group business, furthering its mission to provide best-in-class services and training”.