With the introduction of the Legal Services Act, the SRA are clamping down on firms that pose a risk to clients and are quick to take action if a business is failing. The latest case, Follett Stock, has been closed down by the SRA in order to protect clients and beneficiaries – the firm had offices in London, Bristol, Truro in Cornwall and Exeter. Usually it can take up to three weeks to put a company into liquidation but with SRA’s intervention, immediate action can be taken.
Director of client protection at SRA, Helen Herniman, stated, ‘In cases like these where the firm has become insolvent, we can only intervene once all other options have been exhausted. We have had to intervene on this occasion as there was a clear risk to clients' interests by the firm’s financial difficulties’. As a result of winding up petition ordered against Follett Stock, 30 staff at the London and Truro offices were made redundant.
While law firms are facing a tough time, the best thing a struggling company can do is to consider turnaround options for the business before it is too late and the SRA takes over. If you have cashflow issues, declining sales or your business is falling behind on PAYE and VAT payments, we can help. We act as a ‘fresh pair of eyes’ and can assist with the revaluation and restructure of the company to find a way forward.
If you would like insolvency advice and support, please call us on 0800 9700539 or speak to our expert on legal matters, Grant Jones, on 07815 873370.