Wed, 07 Jun 2023 | ADMINISTRATION
Plexus Law, a specialist defendant insurance law firm, is exploring the option of a sale after filing notice of intention to appoint administrators. The notice will give the firm time to explore additional funding options after investor support was withdrawn.
According to a company spokesperson, after the firm was acquired in 2019, “serious financial irregularities” were discovered by its management. The impact of this meant the company had to secure additional funding from investors, which it successfully did in March 2023.
However, the spokesperson added, the company was “unable to broker the necessary agreements” to meet the conditions upon which the new investment was contingent, resulting in investor support being withdrawn.
As a result, the company has now filed a notice of intention to appoint administrators as it explores its available options, with the move said to allow the company to take positive action to preserve value. The company spokesperson said that, prior to investor support being withdrawn, “the business' underlying trading has been running in line with its forecast.”
The spokesperson added: "In these circumstances, we are now looking to raise fresh funds for the firm from a new investor. This may involve a sale or merger of part or all of the business with another firm.
Plexus Law provides specialist legal services to a range of clients including public sector bodies, the Lloyd’s market, corporates, insurers and reinsurers. The company is headquartered in Leeds and also has offices in London, Liverpool, Manchester, Edinburgh, Chelmsford and Evesham, employing around 700 staff.
The company’s accounts are currently overdue at Companies House, with its most recent accounts, for the year to March 30 2021, showing losses of £1.26 million. At the time, the company’s net assets were valued at £12.3 million.
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