David Nicholson, founder and ex-director of Nicholson International, which collapsed with debts of £11.5m last year, is setting up a new recruitment business Professional Recruiter has learned.

It is thought the company will specialise in recruitment in the Middle East.

Nicholson is currently seeking funding for the venture, but is likely to face difficulties following the collapse of his earlier venture.

Nicholson International went into liquidation in November last year, before the company was resurrected with a new management team following a management buy-out and a deal with the Alexander Mann Group (AMG).

Many in the industry were angry and surprised to learn that the company had built up such large debts on an asset base of less that £1m.

Leading suppliers to the industry were left out of pocket including debts to prominent recruitment to recruitment companies thought to total £350,000.

Some staff at the company were also left unpaid – although Nicholson is planning to use staff from the old company in his new venture.

Professional Recruiter has contacted David Nicholson who will not comment at the moment as he is consulting with his lawyers over a range of issues. He has given an assurance that he will comment on these matters at a future date.