Midlands firm Challinors has filed notice to appoint an administrator: and its senior partner has claimed that this is somehow a good thing.
The High Court was notified of the firm's intention on Wednesday, according to the Lawyer. Paul Griffiths, Senior Partner of the 14 partner firm, said that this is "a good news rather than a bad news story as far as we're concerned as we're positioning ourselves for a sale".
Challinors recently had to call in a corporate recovery specialist after it was sued for £250,000 that it had apparently borrowed in order to pay its VAT bill. It is also on the SRA's watchlist of the UK's top 200 legal service providers that are most at risk. Good news indeed. But despite all that, it is top ranked by the Chambers and Legal 500 guides. Maybe they know something that has escaped everyone else.
The creation of a new company called Challinors Legal just a couple of days ago lends support to the theory that the firm is entering a pre-pack administration (in which, inevitably, its creditors would be done over). But, as when Cobbetts wound itself up, flogged itself to DWF and repaid its unsecured creditors just two pence in the pound, the SRA is refusing to get involved.
A spokesman for the firm wouldn't comment on the arrangements. In a statement, he said that "working in conjunction with our key stakeholders, we have taken steps to protect our position pending a sale of the business by filing a notice of intention to appoint an Administrator. This will allow an orderly transfer of the business in the near future. In the interim, the business continues to trade normally and we give an assurance that the interests of our clients and staff have been safeguarded."
Tip Off ROF
The High Court was notified of the firm's intention on Wednesday, according to the Lawyer. Paul Griffiths, Senior Partner of the 14 partner firm, said that this is "a good news rather than a bad news story as far as we're concerned as we're positioning ourselves for a sale".
Challinors recently had to call in a corporate recovery specialist after it was sued for £250,000 that it had apparently borrowed in order to pay its VAT bill. It is also on the SRA's watchlist of the UK's top 200 legal service providers that are most at risk. Good news indeed. But despite all that, it is top ranked by the Chambers and Legal 500 guides. Maybe they know something that has escaped everyone else.
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William Challinor turning in his grave yesterday |
The creation of a new company called Challinors Legal just a couple of days ago lends support to the theory that the firm is entering a pre-pack administration (in which, inevitably, its creditors would be done over). But, as when Cobbetts wound itself up, flogged itself to DWF and repaid its unsecured creditors just two pence in the pound, the SRA is refusing to get involved.
A spokesman for the firm wouldn't comment on the arrangements. In a statement, he said that "working in conjunction with our key stakeholders, we have taken steps to protect our position pending a sale of the business by filing a notice of intention to appoint an Administrator. This will allow an orderly transfer of the business in the near future. In the interim, the business continues to trade normally and we give an assurance that the interests of our clients and staff have been safeguarded."
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I think there may be a precedent for that north of the border. A certain football club which in fact had liquidators appointed and hived-off its assets to a Newco. The Newco (incorporated in 2012) celebrated its 140th birthday this year and both the ASA and a former senior judge have confirmed it is the same club. It has the most successful manager in the history of football - 54 league titles in one year.
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