Parts of the legal services business is to be bought out in a pre-pack administration deal, saving nearly 2,000 jobs.
The sales of personal injury division and medical legal business will raise over £50 million to tackle the group’s £70 million debt. Sources say the reason behind the struggle has been due to increasing pressure on litigation fees.
AlixPartners have been appointed oversee the process. Joint administrator, Peter Saville, said “Despite the receipt of further support from its financial stakeholders, the Group was unable to resolve its cash flow issues and sought to market itself for sale. As a result of that marketing process it became apparent that in the current environment a sale of the group as a whole was not a viable option and the liabilities attached to Group entities also precluded a solvent sale”.
“A series of business and asset sales was therefore agreed with the transactions completed by way of a pre-packaged Administration preserving over 2,000 jobs in more than 20 separate office locations across the UK.”