West End firm Jeffrey Green Russell has entered into administration and been acquired by Gordon Dadds as part of a pre-pack deal.
Spinning hard, the firesale has been presented as a merger, although in a very clear indication of which party is in charge, a spokeswoman said the "combined firm" will be known as 'Gordon Dadds incorporating Jeffrey Green Russell'.
| Who's your Gordon Daddy?
On Friday, RollOnFriday reported that Jeffrey Green Russell had filed to appoint an administrator. Later that day, it did, as part of a pre-pack administration in which the firm's choicest assets were sold to Gordon Dadds. In a statement today the firm said that "most" of the current directors of JGR will become partners in Gordon Dadds, and that they are "simultaneously transferring" their clients and practice teams over to it.
Their new master is making a habit of snapping up rivals when it finds them twitching on the slab. Last year Gordon Dadds acquired the juicy bits of Davenport Lyons, giving the partners cushty new positions but leaving other staff without jobs. The fallout this time is similar. JGC chairman Philip Cohen said, "Unfortunately, we could not take all our support services staff with us – I am extremely grateful to them for their past services to us". Picking perhaps the worst moment to praise the rude health of the market, having been part of management which has apparently spectacularly misjudged it for some time, Cohen said staff may have no employment, "but we are already helping them to find new jobs within a buoyant London economy". So buoyant we went bust.
Meanwhile, the fee-earners are, says Cohen, "hugely enthusiastic for this deal and for what they will be able to achieve in their new home”. Like get paid. Unlike the creditors and non-fee-earners and anyone else the failed firm has left behind. In a somewhat worrying prediction, Cohen said, “This sort of commercial model offers a way forward for the ambitious professional services firm of the future".
Read more on Friday.