Daily News

View All News

Corporate Resource Services sends 1,300 more termination notices

March 06, 2015

Corporate Resource Services, which ranked as the 22nd-largest US staffing firm last year, sent 1,300 more termination notices on Feb. 26 to customers that represented $270 million in billings last year, according to a filing on Tuesday with the US Securities and Exchange Commission. The billings represented 27% of all company billings in 2014.

New York-based Corporate Resource Services is being led by a chief restructuring officer to oversee a possible sale of the firm after the PEO it works with filed for bankruptcy protection.

Termination notices generally provide for the company to continue providing services for the next 30 days; customers are expected to switch to a new staffing provider at that point, according to the filing. Counting the termination notices sent Feb. 26 and at other times, the company has in total sent termination notices to customers that represent approximately $720 million in revenue, or 72% of its 2014 billings.

The company also reported the purchase price for its Corporate Resource Development subsidiary was $7.3 million at closing and $2.5 million over the next 41 months. The sale of the division to Noor Staffing Group was previously announced last week. The subsidiary had $62 million in billings in 2014 and represented 6% of all the company’s billings for last year.

The company continues to evaluate sales opportunities for the remainder of its business, according to the firm’s SEC filing on Tuesday.

Also law firm Pomerantz LLP announced Thursday it filed a class action lawsuit against Corporate Resource Services to recover damages for alleged violations of federal securities laws. The suit was filed in the Southern District of New York.