Manchester-based firm Cobbetts is going into administration.
The firm filed a notice of intention to appoint administrators on Monday, and staff were informed on Wednesday. The firm's pre-tax profits for 2010-2011 were £9.9m, with debts standing at £10.5m. A spokeswoman told RollOnFriday that "having regard to the difficult trading conditions in the professional services sector we have reluctantly concluded that the appropriate course at this time is for the firm to obtain the protection of an interim statutory moratorium to enable a sale of the business and assets of the firm to be concluded in a short time frame".
Cobbetts filed for administration just before the deadline for it to pay its latest tax bill. It had already gone through three rounds of redundancies, and there were also rumours that it was being hammered on its rent. If that's the case, then it won't be the first time that an expensive office has proved to be the nail in the coffin of a law firm. All this at a firm that was still recruiting only two weeks ago. Now that's management.
The firm has now put up its "For Sale" sign, and the 500 staff and 74 partners prayed that DWF, which the firm considered merging with a year ago, would come to its rescue. And it has. As reported in The Lawyer, yesterday evening DWF put out a statement announcing its intention to acquire the firm, subject to court approval. If it goes ahead, lawyers in busy areas should be just fine but many support staff may find themselves on the dole queue. And if it all falls through, well at least one local rival has already indulged in some shameless profiteering.
The fate of the firm's current and future trainees is unknown, but they'll be hoping there's a new home for them at DWF. The firm's grad rec website is still in existence, with the strapline that it is "futureproof".
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The firm filed a notice of intention to appoint administrators on Monday, and staff were informed on Wednesday. The firm's pre-tax profits for 2010-2011 were £9.9m, with debts standing at £10.5m. A spokeswoman told RollOnFriday that "having regard to the difficult trading conditions in the professional services sector we have reluctantly concluded that the appropriate course at this time is for the firm to obtain the protection of an interim statutory moratorium to enable a sale of the business and assets of the firm to be concluded in a short time frame".
Cobbetts filed for administration just before the deadline for it to pay its latest tax bill. It had already gone through three rounds of redundancies, and there were also rumours that it was being hammered on its rent. If that's the case, then it won't be the first time that an expensive office has proved to be the nail in the coffin of a law firm. All this at a firm that was still recruiting only two weeks ago. Now that's management.
The firm has now put up its "For Sale" sign, and the 500 staff and 74 partners prayed that DWF, which the firm considered merging with a year ago, would come to its rescue. And it has. As reported in The Lawyer, yesterday evening DWF put out a statement announcing its intention to acquire the firm, subject to court approval. If it goes ahead, lawyers in busy areas should be just fine but many support staff may find themselves on the dole queue. And if it all falls through, well at least one local rival has already indulged in some shameless profiteering.
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Cobbetts yesterday |
The fate of the firm's current and future trainees is unknown, but they'll be hoping there's a new home for them at DWF. The firm's grad rec website is still in existence, with the strapline that it is "futureproof".
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