Staffing 360 Solutions, Inc. (STAF): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the mechanics of a company fighting for its footing, and Staffing 360 Solutions, Inc. is a prime example of a business model under extreme stress. Honestly, looking at their structure now, especially while operating under Chapter 11, is less about spotting future upside and more about understanding operational triage; they are managing a portfolio of US staffing brands while servicing a hefty debt load, all while generating TTM revenue near $176.82 million as of late 2025. This canvas strips away the noise to show you the core-from their high Cost of Revenue, which is about 85.1% of sales, to their key activity of financial restructuring-so you can see the hard choices they face daily. Keep reading to see the nine building blocks that define this financially-strained entity.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Key Partnerships

You're analyzing the structure of Staffing 360 Solutions, Inc. as it navigates trading on the OTC market following its NASDAQ delisting on February 13, 2025. The Key Partnerships section shows a heavy reliance on financial backers and the brands it has integrated.

Debt Holders and Financing Extensions

The company's operational flexibility, or lack thereof, is directly tied to its relationships with major debt holders. These partners dictate the near-term financial runway, which has been consistently extended throughout late 2024 and early 2025.

The total debt figure as of early 2025 stood at $41.32 million, which was significant given the TTM revenue of approximately $176.82 million and a negative TTM EBITDA of -$10.49 million.

Key financing partnerships include:

• MidCap Funding IV Trust: Secured an extension of the Credit and Security Agreement commitment expiry date to March 1, 2025 (via Amendment No. 39).
• Jackson Investment Group, LLC: Extended the maturity date of the Third Amended and Restated Note and the 12% Senior Secured Promissory Note to February 15, 2025.

A major restructuring event involved Jackson Investment Group, LLC. On January 22, 2025, the firm entered a Conversion Agreement where all outstanding principal of the Jackson Notes was converted into approximately 5.6 million shares of newly designated Series I Preferred Stock, which also included a waiver of all accrued and unpaid interest. This move was critical as the company's current ratio was approximately 0.32, signaling liquidity strain.

Acquired Staffing Firms for Brand and Market Access

Staffing 360 Solutions, Inc. executed a buy-and-build strategy, though its structure shifted significantly in 2024 and 2025. The focus is now squarely on the US market following the divestiture of its UK operations to IPE Ventures in early 2024. The US staffing revenue for 2024 was reported at $175 million. The company's stated long-term belief was that acquisitions could drive annual revenues to $500 million.

The portfolio of acquired brands, which provide market access and brand recognition, includes:

The attempted merger with Atlantic International Corp. (which was later canceled) aimed to create a combined entity with an annualized revenue run rate of approximately $620 million.

Payroll and Benefits Providers

Staffing 360 Solutions, Inc. relies on external providers to manage the complex administrative needs of its large temporary workforce, which is essential for its commercial and professional staffing segments.

• Management of the large temporary workforce requires external payroll processing.
• Benefits administration is outsourced to manage compliance and cost for contingent staff.

Technology Vendors

The operational backbone for recruiting and back-office functions depends on established technology partnerships, necessary to support the scale of its US operations.

• Use of e-recruiting platforms for candidate sourcing.
• Integration with back-office systems for time tracking and invoicing.

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Key Activities

You're looking at the core actions Staffing 360 Solutions, Inc. had to focus on, especially after filing for reorganization. The business model's key activities shifted dramatically following the May 5, 2025, Chapter 11 filing in the U.S. Bankruptcy Court for the Eastern District of North Carolina, case number 25-01684.

Recruiting, screening, and placing temporary and permanent staff.

This remains the fundamental revenue-generating activity, though it operates under the shadow of financial restructuring. Staffing 360 Solutions, Inc. provides temporary contractors and permanent placement services across its segments. For context on scale, the company reported US staffing revenue of $175 million in 2024. As of the May 2025 filing, the company reported having 150 employees.

Managing a decentralized portfolio of acquired staffing brands.

The company executes a global buy-and-build strategy, operating through segments including Commercial Staffing, Professional Staffing-US, and Professional Staffing-UK. The operational structure involves managing these acquired entities. Here's a snapshot of the financial context leading up to the Chapter 11 filing:

Financial restructuring and debt management under Chapter 11.

This became a paramount activity following the May 2025 filing. Before that, significant efforts were already underway to manage liabilities. For instance, in January 2025, maturity dates for certain notes with Jackson Investment Group, LLC were extended to February 15, 2025, and the credit agreement with MidCap Funding IV Trust was extended to February 1, 2025. The filing indicated that there will be funds available for distribution to unsecured creditors. The latest reported quarterly revenue, for the quarter ended September 28, 2024, was $46,098,000, against a net loss of $2,844,000 for that same quarter.

The company's focus here is on navigating the court-supervised process. It's a tough spot; if onboarding takes 14+ days, churn risk rises.

Sales and marketing to secure new commercial and professional contracts.

Securing contracts fuels the underlying staffing operations. The company's focus areas for contracts include information technology, financial, accounting, healthcare, and cyber security industries. The gross profit for the third quarter of 2024 was $6,162,000, down from $7,663,000 in the prior year's same quarter. Operating expenses were reduced to $7,470,000 for that quarter from $9,154,000 the year before, partly due to reductions in force implemented in May 2023 and February 2024. You can see the quarterly performance trend:

• Revenue for Q3 2024: $46.1 million.
• Net Loss for Q3 2024: $2.8 million.
• Cash used in operating activities for the nine months ended September 28, 2024: $3,556,000.

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Key Resources

You're looking at the core assets Staffing 360 Solutions, Inc. (STAF) relies on to execute its buy-integrate-build strategy across the staffing sector.

Portfolio of established US staffing brands represents a key tangible resource, built through acquisitions. These brands provide immediate market access and client bases across various disciplines. As of the latest filings, the domestic (U.S.) subsidiaries include:

• Monroe Staffing Services, LLC
• Lighthouse Placement Services, Inc.
• Key Resources Inc.
• Faro Recruitment America, Inc.
• Staffing 360 Georgia, LLC

The company also operates through three core Business Streams: Professional Staffing, Commercial Staffing, and Employer of Record services.

National footprint and e-recruiting technologies support the brand portfolio. While specific technology details aren't itemized as a resource count, the operational footprint spans the United States and includes UK subsidiaries like The JM Group (IT Recruitment) Limited and Clement May Limited. The company's strategy targets acquisitions in finance and accounting, IT, engineering, administration, and commercial disciplines.

Human capital: internal recruiters and account managers are essential for service delivery. The latest reported employee count was 265 as of December 31, 2022. This team supports the delivery of temporary, contract, or permanent staffing solutions.

Access to capital is a critical, yet constrained, resource. The prompt specifies a current debt load of $41.32 million, which directly impacts financial flexibility and the ability to pursue further accretive acquisitions, a stated goal to reach $500 million in annual revenues. The company has been actively restructuring, including converting $5.6 million in debt to preferred stock in early 2025.

Here's a quick look at some recent financial metrics to ground the discussion on capital access and scale, using Trailing Twelve Month (TTM) data as of September 30, 2024, where available, alongside year-end 2023 figures:

The company reported a working capital deficit of $48,818,000 as of September 28, 2024. Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Value Propositions

You're looking at the core offerings of Staffing 360 Solutions, Inc. as of late 2025. The value they aim to deliver centers on providing flexible staffing solutions across specialized and generalist roles, all while managing the administrative burden for you, the client.

The company's structure, which includes streams like Professional Staffing and Commercial Staffing, directly supports these value propositions. To be fair, the current financial backdrop-with Trailing Twelve Month (TTM) revenue around $176.82 million but a TTM Net Loss of about -$23.42 million-shows the operating environment for delivering this value is challenging right now.

Here's how the value propositions map to their service lines:

• Flexible workforce solutions (temporary and contract staffing).
• Specialized placement in IT, finance/accounting, and engineering.
• Reduced employer-of-record (EOR) risk for clients.
• Speed and scale in filling light industrial and office/clerical roles.

The flexible workforce component is fundamental; Staffing 360 Solutions, Inc. provides temporary contractors alongside recruiting candidates for permanent placement services. This dual offering lets you adjust your workforce up or down as your project needs shift.

For your high-skill needs, the specialization is clear. The Professional Staffing segment focuses on disciplines where finding the right fit is defintely tough:

• Information Technology
• Accounting and Finance
• Engineering

The third proposition involves administrative relief. Staffing 360 Solutions, Inc. lists an Employer of Record Business Stream, which is designed to take on the administrative and compliance risks associated with employing contract workers on your behalf. This is a direct value add for reducing your back-office load.

For high-volume, less specialized needs, the Commercial Staffing stream targets roles often categorized as light industrial or office/clerical, supporting administration and commercial disciplines. While we don't have a metric for the exact speed, the scale is implied by the company's historical focus and its current US-centric operational model following the divestiture of its UK operations in early 2024.

Here's a quick snapshot of the financial context surrounding these services as of late 2025:

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Customer Relationships

You're looking at how Staffing 360 Solutions, Inc. manages its client base following the late 2024 acquisition by Atlantic International Corp. The relationship strategy clearly bifurcates across service types, reflecting the different needs of professional versus commercial accounts.

Dedicated account management for professional staffing clients.

The Professional - US segment shows resilience, with its revenue rising by 4.3% in the third quarter of 2025 to reach $26.9 million. This segment, which includes accounting, finance, IT, and engineering placements, requires a more consultative approach, suggesting dedicated account management is key to maintaining this growth trajectory amidst a challenging environment for the commercial side. This segment accounted for approximately 58.35% of the total Q3 2025 revenue of $46.1 million.

High-touch, personal service for permanent placement (direct hire).

For permanent placement services, which are part of the professional offering, the relationship model leans heavily on personal service to secure successful long-term matches. While specific direct hire revenue figures for late 2025 aren't itemized separately from the professional segment, the overall strategy supports high-value, relationship-intensive placements.

Automated, self-service portals for high-volume commercial clients.

The commercial staffing segment, covering office/clerical and light industrial, appears to rely more on scalable, automated interactions, which is typical for high-volume temporary staffing. This segment saw a significant revenue decrease of 19.2% in Q3 2025, falling to $19.2 million. The reliance on self-service portals helps manage the transactional nature of this business, even as volume fluctuates.

Relationship-driven model with acquired companies' long-term clients.

The integration following the November 2024 merger agreement with Atlantic International Corp. places a focus on relationship continuity with the combined entity's client base. The pro-forma combined company serves more than 1,500 customers. A key risk mitigation factor in this model is diversification; no single customer is expected to generate more than 5% of total revenue for the combined entity. The acquired Staffing 360 Solutions, Inc. operations now function as a wholly owned subsidiary, inheriting existing client relationships that are critical to achieving the expected run-rate cost synergies/savings of approximately $10 million.

The structure of client engagement can be summarized by the relative size and service type:

The overall client relationship strategy is built on maintaining a broad base, as evidenced by the fact that the 2024 US staffing revenue of $175 million was spread across numerous accounts.

Key relationship metrics and context include:

• Total customer base post-merger: Over 1,500 customers.
• Customer concentration limit: No customer above 5% of total revenue.
• Professional segment revenue growth (Q3 2025 vs Q3 2024): 4.3% increase.
• Commercial segment revenue decline (Q3 2025 vs Q3 2024): 19.2% decrease.

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Channels

You're looking at how Staffing 360 Solutions, Inc. gets its services-professional and commercial staffing-to clients, especially now that the focus is exclusively on the U.S. market following the divestiture of the U.K. business in early 2024. The channels are the pathways for both securing talent and placing them with clients.

Direct sales teams and business development outreach form a core part of reaching clients for their Professional Staffing (accounting, finance, IT, engineering) and Commercial Staffing segments. This direct approach is necessary for securing the contracts that generated approximately $175 million in U.S. staffing revenue in 2024. Honestly, for high-value, permanent placement, or specialized contract roles, you need boots on the ground talking to hiring managers.

Online job boards and e-recruiting platforms are defintely a high-volume channel for sourcing candidates for temporary and contract roles, particularly within the Commercial Staffing stream. While I don't have the exact spend or conversion rate for 2025, the nature of the business means these platforms are critical for maintaining a pipeline of available talent to meet client demands across the U.S.

The Network of acquired US branch offices is the physical manifestation of their buy-integrate-build strategy, now concentrated solely within the United States. This network supports the operations of their key U.S. staffing brands, like Monroe Staffing Services, Headway Workforce Solutions, and Lighthouse Professional Services. The strategy, as of early 2024, was to concentrate resources on the world's largest staffing market, which implies these offices are the primary delivery mechanism for service fulfillment.

Company websites for job seekers and client inquiries serve as the digital front door. The main site, staffing360solutions.com, is where you'd look for corporate updates, especially post-delisting from Nasdaq in February 2025. Job seekers use the sites to apply, and prospective clients use them to initiate contact for staffing solutions in the accounting, finance, IT, engineering, and administration sectors.

Here's a quick look at the scale of the U.S. operation that these channels support, based on the latest available full-year data:

The channels are designed to feed the two main U.S. segments, aiming to support the revenue base that was approximately $177 million in the Trailing Twelve Months ending September 2024. If onboarding takes 14+ days, churn risk rises, which means the efficiency of these channels directly impacts near-term financial stability.

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Customer Segments

You're looking at the core client base Staffing 360 Solutions, Inc. serves now that the UK operations are divested, focusing squarely on the domestic market. The customer base is clearly segmented into two primary US-based revenue streams, which, based on the last full-quarter breakdown (Q2 2024), show a near-even split in terms of contribution to the top line.

The US Commercial Staffing clients, covering light industrial and office/clerical roles, represent a significant portion of the business. For instance, in the second quarter of 2024, this segment accounted for approximately 45.6% of the total quarterly revenue reported.

Next, you have the US Professional Staffing clients, which target specialized needs in IT, Finance, and Engineering. This group was the larger revenue driver in that same period, making up about 54.4% of the total quarterly revenue, showing a preference for specialized placement.

The overall target for Staffing 360 Solutions, Inc. remains ambitious; the leadership team has stated the goal is achieving a profitable, $500 million revenue enterprise through accretive acquisitions, meaning they are targeting mid-to-large enterprises that require flexible, high-volume staffing solutions to meet that scale.

A specialized group within the Professional segment serves companies needing specialized survey research personnel, primarily through the Headway Workforce Solutions acquisition. While Headway reported unaudited revenue of $85 million back in 2021, the terms of that acquisition involved up to approximately $14 million in stock and cash, indicating this niche is considered a valuable, high-touch technology-driven component of the overall offering.

Here's the quick math on the US segment revenue split from the latest structural data:

The specific types of clients served within the professional side include:

• Clients requiring IT contractors.
• Enterprises needing Finance/Accounting personnel.
• Companies seeking Engineering talent.

What this estimate hides is the current revenue run-rate, as Q3 2024 revenue was reported at $46.1 million, showing a contraction from the prior year, so the segment percentages are based on a shrinking base.

For the specialized research segment, the customer base is defined by:

• Projects in the social sciences sector.
• Clients in the healthcare research space.
• Companies needing marketing survey personnel.

Finance: draft 13-week cash view by Friday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Staffing 360 Solutions, Inc. (STAF) model, and honestly, it's dominated by the cost of the people they place. For a staffing firm, the Cost of Revenue (CoR) is your biggest lever, and it's a heavy one.

The core cost driver is the direct compensation for temporary workers. This includes wages, payroll taxes, and benefits-the stuff that moves directly with revenue. For the nine months ended September 30, 2023, revenue was $188.7 million, and the Gross Profit was $27.7 million. This means the Cost of Revenue for that nine-month period was approximately $161.0 million, translating to a CoR of about 85.3% of revenue, which lines up closely with the historical $\approx 85.1\%$ figure for 2023. More recently, for a trailing twelve-month period ending around late 2024, the Cost of Revenue was reported as $153.18 million against revenue of $176.82 million, pushing the CoR percentage even higher to 86.6%.

Next up, you have the Selling, General, and Administrative (SG&A) expenses. These are the fixed and semi-variable costs of running the corporate structure, the sales teams, and the back office across the US and UK operations. These expenses are significant, as the company operates an international buy-integrate-build strategy. For a period ending around late 2024, General & Administrative expenses were noted at $41.83 million.

Given the history of acquisitions, debt is a major structural cost. You can see this reflected in the interest expense. In the third quarter of 2023 alone, interest expense was $1.53 million, up from $0.89 million in the prior-year period. This burden is supported by a high leverage ratio; for instance, the Debt/Equity ratio was listed at 282.36% at one point.

Finally, you're paying to maintain the infrastructure from those acquisitions. This includes amortization and depreciation of acquired assets, plus the integration costs that don't always fit neatly into CoR or standard SG&A. The balance sheet reflects this with substantial intangible assets; Goodwill and other intangible assets were reported at $29.84 million.

Here's a quick look at how these major cost buckets stacked up based on the latest available data points:

The cost structure is clearly sensitive to labor market conditions and the cost of servicing the debt used to fuel growth. You've got to watch those gross margins closely, as even a small dip in the mix toward lower-margin light industrial work can significantly widen the operating loss.

Key cost pressures Staffing 360 Solutions, Inc. faces include:

• Worker wages, taxes, and benefits, which consume the vast majority of revenue.
• Operating costs for the US and UK segments.
• Interest payments on significant outstanding debt.
• Costs related to integrating acquired staffing organizations.
• Workers' compensation costs, cited as a specific headwind.

Finance: draft a sensitivity analysis on interest expense assuming a 100 basis point rise in benchmark rates by next Tuesday.

Staffing 360 Solutions, Inc. (STAF) - Canvas Business Model: Revenue Streams

You're looking at Staffing 360 Solutions, Inc. (STAF) and need to know where the money comes from. The total Trailing Twelve Months (TTM) revenue, as of the quarter ending September 28, 2024, landed at approximately $176.82 million. This top-line number is the aggregate of their core staffing services, which historically are dominated by fees from temporary and contract staffing engagements, which generally carry a lower margin than direct hire work.

The business model, post-UK divestiture, is now squarely focused on the US market, split between two main operational segments. The Professional Staffing segment is where you'd expect to find the higher margin, lower volume permanent placement (direct hire) fees, alongside specialized contract work. The Commercial Staffing segment typically covers the more volume-driven light industrial and office/clerical roles, which are the bread-and-butter temporary and contract fees. While the outline mentions Employer-of-Record (EOR) services fees, the public reporting focuses on these two segments as the primary revenue drivers.

Here's the quick math on the segment split from the second quarter of 2024, which gives you the clearest structural view of the revenue generation:

To be fair, the revenue mix is dynamic. For instance, in the third quarter of 2024, the Professional Staffing revenue actually grew, while Commercial Staffing revenue contracted. This shows you the immediate revenue streams are sensitive to the underlying labor market conditions in those specific verticals.

Focusing on the latest reported quarterly figures gives you a more granular look at the revenue flow:

• Total revenue for the third quarter of 2024 was $46.1 million.
• Professional staffing revenue for Q3 2024 was $26.9 million, a rise of 4.3% year-over-year.
• Commercial staffing revenue for Q3 2024 was $19.2 million, a drop of 19.2% year-over-year.
• The revenue for the quarter ending September 28, 2024, was $46.10 million, a decrease of 6.94% from the prior year period.

The company's historical strategy aimed for annual revenues of $500 million through acquisitions, but the current TTM revenue of $176.82 million reflects a more streamlined, post-divestiture reality. Finance: draft 13-week cash view by Friday.