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)
Englightened One | 4-Feb-2013 6:24 pm
The legal detective has got it from me! An orchestrated move by those who know best how to exploit the finer details of the law in order to maximise partner returns in a pre-arranged deal!
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Misery | 4-Feb-2013 6:24 pm
Nice one. Partners tax unpaid so partners now need to pay their tax from their taxed income on the basis they were remunerated net of the tax which was supposedly retained by the firm but which will have funded working capital (and drawings).
Ponzi, misery and a board which must be sweating.
This will be as messy as the Halliwells debacle. I wonder whether there is a reverse premium in amongst it all.
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Anonymous | 4-Feb-2013 6:24 pm
Unlikely all of Cobbetts trainees will get spaces with DWF.
However probably worth telephoning Dickinson Dees as their senior partner told The Lawyer 2B in early January that the new Bond Dickinson firm will be taking on lots more trainees.
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Anonymous | 4-Feb-2013 6:24 pm
Company Records show that Leaitherland started his 'legal life' running a Will Writing service with one other person who appears to be his Mother. This company was dissolved in 1997 - a year or so after inception. Now look where Leaitherland is today - about to to 'rescue' a large prestigious company from administration. Inspirational or what.....
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