Director Cliff Sewell said 23 jobs were saved and creditors “kept to an absolute minimum” during the process.
Sewell Moorhouse supplied recruits for accountancy, finance and administrative positions.
Mr Sewell said: “It was a restructuring of the business because of a rapidly changing job markets in which we needed to refocus our energies into specific areas so we could really focus on looking after our existing clients.”
He added: “Creditors (have been) kept to an absolute minimum and we have established new trading relationships with organisations which have supported us in the past.”
Mr Sewell intends to maintain the company’s offices in Leeds and Sheffield.
He said: “There’s a development plan for future growth of the business.”
Past turnover was around £3m a year, which Mr Sewell hopes to reach over the next two years.
The new business will be trading as Sewell Recruitment Group.