Another day, and another law firm on the brink. After Cobbetts in January and Semple Fraser in March, Midlands firm Challinors has become the third this year to inform the High Court that it was appointing administrators.
Challinors told the court in Newcastle on Tuesday that it intended to appoint Eric Walls and Wayne Harrison of KSA Group as administrators. Partners were told of the plan on Monday.
Challinors senior partner Paul Griffiths insisted that it is deliberately setting itself up for a sale.
Both Cobbetts and Semple Fraser set up pre-pack deals that resulted in many lawyers and staff finding homes elsewhere.
With many regional firms showing a distinct appetite for merger, there is a good chance that someone will snap up Challinors either whole or piecemeal. But the firm’s story is also, sadly, one that could well be repeated, with many smaller and regional outfits continuing to be squeezed by the tough economic climate.
Also on TheLawyer.com:
- Channel Islands firm Ogier has relocated its London-based lawyers back to Jersey, leaving its City office as a administration services base
- The Court of Appeal yesterday rejected a bid by campaigners to block the Government’s proposals to build the High Speed 2 railway
- And the creators of the ‘Barrister Boyfriend’ list of “hot” barristers have revealed plans to launch a female equivalent list