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Following the application for bankruptcy by Germany contractor and temporary provider Reutax Group IT last month insolvency practitioners have been fighting to save the company.
In a letter to freelancers payrolled by the company Computerwoche (an online IT magazine) reports that the Insolvency practioners, Tobias Wahl (for Reutax AG), Karl-Heinrich Lorenz (for Lenroxx GmbH) and Alexander Reus (for Reutax Temp GmbH), state that the insolvency procedure had to be opened because of a mandatory liquidity gap but go on to say that they consider the business model to be viable. This opinion seems to have been reinforced following talks with client companies of Reutax. The letter goes on to emphasis the "most urgent and important task now” is to implement a rescue but this will only be successful “if you as a consultant” remain aboard.
The affected freelancers see the situation somewhat differently, again according to Computerwoche, since unlike full-time employees, freelancers are not eligible for state insolvency protection payments and are also concerned about their outstanding fees. The freelancers are currently organizing themselves on the social media platform, Xing, at ‘4freelance’ to discuss their next steps.
The company, which supplies companies such as the German Telekom, T-Systems and the German Railways with IT professionals, filed for bankruptcy in the Court of Heidelberg. The action affects Reutax AG, Lenroxx GmbH and Reutax Temp GmbH, with only Ploin GmbH apparently spared. The fate of Reutax sro based in Czech Republic and Reutax Corporation in the USA is unclear.
Reutax founder Soheyl Ghaemian built the company rapidly into a major employment agency in Germany. According to its website “Reutax was founded by Soheyl Ghaemian in 2002 after witnessing the collapse of the German IT market place. Ghaemian believed the road to economic recovery lay in bolstering critical industry sectors like Information Technology, Engineering, and Finance. He envisioned a more dynamic and flexible way to connect best-in-class employers with highly skilled professionals and set out to create a specialized staffing firm to provide such talent”. The backgrounds of the financial difficulties are unclear and as yet few details have been released.
In Staffing Industry Analysts’ ranking of German staffing firms, Reutax appeared in 17th place. The company also features among the top 20 IT staffing providers in Europe.