It won't get the top candidates.
If you're poor and ugly, you won't marry a movie star. And if you're a crappy company the A-grade candidates won't want to work for you either. And, if you're a recruiter working with that company, you'd better make sure they know this from the start.
If they are located where no one wants to live, if the work isn't attractive or if they don't have a great reputation as an employer, they'd better be realistic about the kinds of people they can attract.
What they should do is focus on hiring mediocre people who are a little better than they deserve and have them gradually build the firm up to a level at which it becomes attractive to even better people.
It might take a few years but if it can happen.