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Neutral vendor and workforce management company the Albany Group has apologised for any inconvenience or financial hardship to staffing companies and contractors after admitting that a 3 million Pounds factoring facility for three of its UK companies has been withdrawn, Recruiter reports.
The companies concerned are Albany Management UK, Albany EMEA and Albany Employment Services.
In a letter sent to a recruiter, dated 12 January, Albany says that on 16 December 2009, "the lenders stopped us drawing funds down despite having in excess of 7 million Pounds of receivables against a maximum draw down facility of 3 million Pounds."
At the same time Albany says the lenders "proceeded to capture all incoming funds received from clients and staffing companies with the sole objective of recovering money owed to them."
As a result, the company admits that "for the last three weeks it has not been able to pay many contractors or staffing agencies who are owed money by any one of the three Albany companies."
According to the letter, the funding facility which was used to finance specific businesses as well as to provide working capital for the group was withdrawn following a review by the lenders of Albany's contract with two major clients.