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.
Exceptional Private Client Wealth Management Firm with an Average client size of over £600,000, Housing c.£80m FUM with more than 80% of Clients in Central and Greater London. Offers invited.
Successful business operating for over 170 years.Provides a comprehensive range of specialist legal services including probate and estate administration, as well as community care, residential conveyancing and commercial property solutions. Offers in...
LEASEHOLD
This is a well-established two Partner Solicitors’ Practice based in the RG postcode area of Berkshire. This Practice would be ideal for one or two individuals who are looking to start up their own first practice. We believe this Practice would also...
|
23
|
|
Sep
|
Cartwright Group enters administration, but fleet and rental arms are sold | ADMINISTRATION
Commercial trailer manufacturer and rentals firm Cartwright ...
|
22
|
|
Sep
|
Macbryde Homes bought by managing director and finance partner | MBO/MBI
Welsh home construction firm Macbryde Homes has been sold to...
|
21
|
|
Sep
|
Aldo UK acquired out of administration by investment firm | BUSINESS SALE
The UK arm of shoe retailer Aldo has been acquired by Birmin...
Sign up to receive our acquisition alert emails to get your FREE guide
|
22
|
|
Aug
|
Welsh technology firm plunges into administration | ADMINISTRATION
Thought to be one of the country’s leading ICT supplie...
|
17
|
|
Jul
|
Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION
A caravan manufacturing business in Preston is on the lookou...
|
10
|
|
Jun
|
Historic Hull electrical engineering firm enters administration | ADMINISTRATION
An electrical engineering company, founded by William Shuttl...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources