The national business recovery group has bought Sheffield-based P&A Partnership in a pre-pack administration deal, taking on 36 members of staff.
P&A Partnership has struggled financially following a legal dispute with Grant Thornton who claimed the firm mishandled a previous client’s insolvency. Grant Thornton alleged their fees ‘were not justified’ – something which the firm outright denies, stressing it was a complex case.
In July, P&A moved office premises and sold off a department within the business.
Caroline Litchfield and Robert Turner from law firm, Brabners, acted as legal advisors on the pre-pack arrangement between Begbies Traynor and P&A – the trade and certain assets were sold for £860,000.
This acquisition - in a distressed situation - of a long established insolvency firm indicates the continued fall in insolvency appointments across the UK. Further consolidation is likely in the next 12 months with more well known names in the industry either merging, or being acquired by stronger rivals, possibly through administration, as per this example. This will see the loss of many firms and jobs. Many people won’t shed any tears at this turn of events, of course!