New York-headquartered headhunter firm CTPartners will file for bankruptcy tomorrow (June 30) after it was rocked by allegations of sexual discrimination.
The firm will cease trading and be sold off in pieces, with some elements going to its nearest rival DHR International.
In December it was reported that a complaint had been lodged with the Equal Employment Opportunity Commission alleging female employees at the firm were underpaid and routinely subjected to sexual harassment. The company’s stock plunged 24% as a result forcing CTPartners to pull out of an equity sale that would have raised about $12m (£10.8m). No court ruling on the case has yet been made.
In February, DHR offered to buy the company for $7 (£6.3) a share, which CTPartners rejected. Activist hedge fund Maguire Asset Management sent a letter to the board in April, adding to pressure on the company to find a buyer.
Sarah Lim, head of the UK retail and consumer practice at CTPartners, has joined executive search firm Korn Ferry.