Fri, 20 Jul 2018 | ADMINISTRATION
A north west law firm has been placed in administration following a string of financial issues.
Nesbit Law Group, with offices in Birmingham, Bury and Liverpool, ceased trading in all three of its sites.
The firm specialised in accident claims relating to road traffic violations, and also handled cases relating to cavity wall claims, holiday sickness and housing disrepair.
Manchester-based insolvency practitioners FRP Advisory LLP were brought in, and partners Ben Woolrych and David Thornhill were assigned as joint administrators.
The law firm experienced monetary challenges “for a number of years” as a result of legislative changes in 2013. The enactment of the Legal Aid, Sentencing and Punishment Offenders Act narrowed the number of those entitled to legal support, which led to financial pressures and impact on working capital.
Moreover, the Bury office suffered severe damages due to flooding in 2016 which caused the firm to lose a number of the company’s most profitable clients and contracts, resulting in further cashflow problems.
According to the firm’s annual report from September 2017, the group owed its creditors north of £3 million through the year, and £4 million to various debtors. Following this, it entered a company voluntary arrangement after meeting with its creditors in Manchester in May last year.
As Nesbit Law Group has stopped all its operations effective immediately, its active cases have been assigned to alternative legal firms to see them through to completion and to continue supporting the clients.
Woolrych said: “Due to significant changes in the legal sector, Newsbit Law had experienced financial challenges for a number of years. Despite every effort to save the business, the firm’s cash position unfortunately meant the only remaining option was for the business to cease trading.”
For more news stories about administrations click here. For all our administrations listings, click here.
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