DWF acquires ailing Cobbetts in pre-pack deal
DWF has rescued ailing firm Cobbetts in a pre-pack deal confirmed by DWF’s managing partner Andrew Leaitherland in an email to staff earlier this afternoon.
Andrew Leaitherland
DWF has also now sent out a statement confirming its intention to acquire Cobbetts. The deal must still be approved by the courts, as Cobbetts filed a notice to appoint administrators on Monday (30 January 2013), but if the deal is approved, DWF will begin transferring people across in the next seven days.
The fact that DWF was interested in rescuing the Cobbetts business was reported on TheLawyer.com this morning (31 January 2013).
According to a statement from DWF, Cobbetts had “built an infrastructure reflecting the buoyant economy of the mid 2000s and had put in place plans to reduce costs. However, poorer than expected trading in November and December last year caused the firm to review its financial position and subsequently obtain an interim statutory moratorium to enable a sale of the business and its assets.”
In a statement, Leaitherland said: “DWF’s plans to grow, in a strategic, targeted way have been clearly set out and this move supports that goal. I am confident that the merging of the two firms would bring genuine benefits to both and, importantly, the joint client base. There are many synergies between the two firms in terms of the sectors in which we operate and this collaboration will further strengthen our existing business. I am very much looking forward to welcoming the new team to DWF.”
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Readers' comments (24)
Anon | 4-Feb-2013 6:17 pm
DWF to the rescue!
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Anon | 4-Feb-2013 6:17 pm
Good on you, Andrew.
DWF will have to sift and restructure but this has to be greeted as good news.
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The Legal Detective | 4-Feb-2013 6:18 pm
I'm starting to get the feeling that this entire administration, pre-pack and now rescue merger had all been orchestrated by the management of Cobbetts and DWF.
Perhaps this avoids a big tax bill or other liability? Or allows DWF to chuck out the partners/staff/offices it didn't want the first time the merger was mooted? Who knows, but this was all a little too well organised and neatly done to be a series of accidents. Smart move perhaps for the partners who put this one together.
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Anonymous | 4-Feb-2013 6:18 pm
Everybody cheered ...
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Chris | 4-Feb-2013 6:18 pm
This looks like the best possible outcome in a difficult situation. I think staff at both firms should be pleased.
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Would I have been too late if I had tried to buy i | 4-Feb-2013 6:19 pm
I'm interested in buying Cobbetts. Who do I speak to? Where is the proposal? Why is this a one horse race and when did the horse begin running?
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Anonymous | 4-Feb-2013 6:19 pm
DWF see Cobbetts books as part of earlier merger discussions / due diligence, DWF decide they can get a better deal by buying it out of the admin.
Hill Dickinson and Halliwells a similar story.
Obviously the new model for the acquisition of highly geared law firms.
I am pleased for the employees of Cobbetts that they have been offered a lifeline, albeit it may be a temporary one. But let's not pretend that DWF are a knight in shining armour in all of this.
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Anonymous | 4-Feb-2013 6:19 pm
Pre-pack more like pre-planned. This must be a relief for the staff but 2 into 1 doesn't always go. It will be interesting to see how the fall out from this unwinds. As ever there will be winners and losers. There will be people who don't like the look of DWF and vice versa. Hopefully DWF will have the sense to get rid of the senior under achievers and management.
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Anonymous | 4-Feb-2013 6:20 pm
What is the pension position?
With LLPs you get to the stage where the people who bear the insolvency risk are the employees with pension rights. The partners have LLP protection and limited exposure to bank debt and should be able to secure fresh jobs. The long serving staff suffer.
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Anonymous | 4-Feb-2013 6:20 pm
Whoopiedoo! How noble and unselfish of DWF and what a fortunate coincidence they were there to help their poor unfortunate rivals in their time of need. I think Andrew Leaitherland deserves a knighthood being such a charitable generous chap and so unlike the unprincipled sharks that inhabit the depths of the legal world. No doubt all the grateful employees of Cobbetts will move over to DWF and live happily ever after in the certain knowledge that their jobs will now be secure. Marvellous. A good news story in times of austerity. We bow down to you Mr Leaitherland. If only there were more lawyers out there with a heart!
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