Firm's insolvency rescue leaves HMRC chasing £90m

The exchequer is chasing about £90m in unpaid taxes after a temping business was rescued from insolvency proceedings in an £18m deal that reimbursed private funders in full.

- Simon Goodley

The main assets of Challenge Recruitment Group, which counted Tesco, Sainsbury's and the Co-op among its top customers, were acquired from administration in July by the US website swipejobs, in what appears to be the second time the British staffing business has emerged from insolvency while owing tens of millions of pounds to the exchequer.

The level of debt owed by Challenge to HMRC has emerged as the chancellor, Rachel Reeves, is under pressure to announce tax rises in her autumn budget to shore up the public finances.

Swipejobs paid £4.9m as part of a "pre-pack" administration deal for the pick of Challenge's contracts supplying staff to a series of huge UK brands, as well as £12.7m to the collapsed group's secured lenders, Close Brothers and Praetura Asset Finance, according to a report by the administrators FRP.