Go2 People Ltd. (GO2:ASX), the Australia-based provider of vertically integrated recruitment and training services, announced that it has entered voluntary administration.

The announcement comes after the group announced last week that its securities would be suspended from quotation immediately under Listing Rule 17.2, at the request of Go2, pending the release of an announcement regarding a material debt owed by a customer.

According to BusinessNews (paywall), the Go2 Group, which comprises GO2 Recruitment, The GO2 People, Skill Hire training and apprenticeships, NARA Training and Assessing, and Hunter Executive Search Consultants, cited legacy Australian Tax Office liabilities as one of the reasons to call in voluntary administration.

In addition to the legal dispute with one of its clients, in January 2022, GO2 discovered it failed to pay superannuation in its entities on time and estimated a AUD 3.1 million (USD 2.0 million) liability payment to the Australian Taxation Office. Go2 sought to raise AUD 3.2 million (USD 2.1 million) via a rights issue offer towards its ATO liabilities in November.

On Monday, the group said it appointed voluntary administrators. The Administrators, Rob Brauer and Rob Kirman of McGrathNicol Restructuring, entered into a loan facility agreement with IntoWork Australia Ltd (IntoWork), a national not-for-profit provider of employment, skills and education, and support services. The loan facility ensures funds are available to the Administrators to maintain trading operations across the Go2 Group.

The Administrators intend to continue operating the Go2 Group on a ‘business as usual’ basis while options for the sale and/or recapitalisation of the business are explored. To this end, the Administrators have agreed to work with IntoWork, which is undertaking due diligence on the Go2 Group with the intention of submitting a sale or recapitalisation proposal to the Administrators.

In its update last week, Go2 People also announced Chief Financial Officer Steven Richards resigned with effect from 26 May 2023. The company appointed John Fitzgerald as its new Chief Financial Officer.