WWD.com/business-news/mergers-acquisitions/24-seven-closes-on-gromwell-deal-458628/
government-trade
government-trade

24 Seven Closes on Gromwell Deal

Recruitment firm 24 Seven Inc., which specializes in the fashion, beauty and retail sectors, said Monday it has closed on the acquisition of staffing...

Recruitment firm 24 Seven Inc., which specializes in the fashion, beauty and retail sectors, said Monday it has closed on the acquisition of staffing company Gromwell Group.

A Manhattan bankruptcy court judge last week approved the purchase, which was followed by the transfer of Gromwell’s operating assets and employees to 24 Seven.

“The fashion staffing industry is projected to climb to an estimated $200 million in revenues with more demands on creativity, global interface, cutting edge technology, speed, efficacy and top talent,” said Celeste Gudas, president of 24 Seven. She noted that the firms are merging to “satisfy the demanding needs of the fashion staffing industry.”

Tom Foley, former chief executive officer of Gromwell who will be a c-level executive at 24 Seven, said, “This is the best possible outcome at the best possible time in the economy for the two companies.”

Gromwell Group in January filed for Chapter 11 bankruptcy court protection in Manhattan, and had been embroiled in a legal battle with 24 Seven that centered on theft of trade secrets and employment contract violations law. A New York State court awarded 24 Seven $742,000 against Gromwell. In bankruptcy court documents, Gromwell said it filed for Chapter 11 protection to bar 24 Seven from trying to seize assets to satisfy the court award.