Daily NewsView All News
The Albany Group temporarily suspended its U.K. operations, but its operations in the U.S. and elsewhere remain strong, according to the company.
Albany plans to appoint an administrator this week with the aim of ultimately restructuring and then moving forward again in the U.K., according to a company source. Albany's operations in the U.S. and elsewhere are only indirectly affected by the moves in the U.K. and remain in business.
In January, U.K.-based Recruiter magazine reported that Albany had apologized for any inconvenience or financial hardship after a GBP3 million factoring facility was withdrawn and the company had not been able to pay money owed to some contractors and staffing agencies.
The company source said Albany won a major account in the U.K. that was larger than first thought, and the Royal Bank of Scotland balked at the 65-day payment term requested by the client. The source said the Royal Bank of Scotland has been under pressure and was reviewing its business. The bank was a casualty of the financial crisis and is now 84% owned by the U.K. government.
The company uses a U.S.-based bank in the U.S. and remains strong with payments continuing, according to the source. It also uses a Dutch-based bank for its Netherlands operations and a local bank for its Asia Pacific operations.
Albany serves as a managed services provider, providing payrolling services and independent contractor compliance services.