Leeds’ Fox Hayes goes into administration
Leeds-based firm Fox Hayes has gone into administration a month after the departure of its commercial and private client teams for Lupton Fawcett.
David Wilson (pictured) and Julian Pitts of the Leeds office of Begbies Traynor have been appointed as administrators.
It is understood that some 115 jobs could be lost, although few of these will be lawyers.
At the end of last year Lupton Fawcett made an agreement to take 10 Fox Hayes partners, including managing partner Philip Drazen, 17 other fee-earners and 11 support staff. This left Fox Hayes with nothing more than a property transfer and volume conveyancing business. (19 December 2008).
One manager at another Leeds firm said: “This comes as no surprise, it was always a question of time. There won’t be any underlying assets, all you’ve got is a bunch of clients giving you volume work, which will just go to another panel member. Work was mainly done by clerks with a computer system. There will just be a bunch of people joining the ever-growing volume of people made redundant.”
Prior to the loss of teams to Lupton Fawcett, Fox Hayes’ conveyancing business had placed 43 jobs under review (7 October 2008).
At the end of the last financial year Fox Hayes had a turnover of £10.1m, and 254 members of staff.
Wilson and Pitts and Fox Hayes were unavailable for comment.
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Readers' comments (47)
Poor Conveyancer | 19-Jan-2009 7:43 pm
Out Foxed
Very sad to see a second tier player go to the wall. Whilst the established players enact and optima are the Man U and Chelsea of the volume world, employ the best staff and lead the field by a long way and will survive, never the less the message is clear no fat cats exist in conveyancing and second tier players are very vunerable. Estate Agents & Banks give the boys a break
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Kay Sanders | 20-Jan-2009 9:40 am
Heartless and callous
I cannot believe the tone of this article. The statement that few of the job losses will be lawyers is heartless and callous. The comment from the manager at "another Leeds firm" is rude and demeaning both of the work previously done by Fox Hayes and to the ex-employees. It seems the legal profession has not moved on from the Victorian attitudes which used to make it so elitist and unloved by the general public. Redundancies do matter even if the people concerned are not partners or senior solicitors.
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Anonymous | 20-Jan-2009 9:58 am
Foxed Up
FH was an experiment in shaping a law firm as a commercial business to meet the brave new world. Its failures (wider than just the conveyancing shed) demonstate how difficult a transtion this going to be for a lot of traditional firms.
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BOB the builder | 20-Jan-2009 10:49 am
Is this all?
It is noted what "Poor Coveyancer" says in respect of the second tier firms. However, rumours abound about one of the top tier firms that isn't mentioned in the comment. It is not just the tier two that are affected but all tier firms.
Drawing upon the anology of Premiership football even the Man Us and Chelseas of this world aren't immune. What would happen if the Glazers or Abramovichs pull the financial plug?
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Tim Beaumont, nothing to do with law | 20-Jan-2009 11:45 am
Rats and Fat Cats
Since when was it ethical for the captain of a sinking ship to abandon it before seeing to the safety of his crew?
No more to say.
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Anonymous | 20-Jan-2009 12:51 pm
Typical
Funny that isn’t it, when in December the rest of the firm was sold/ transferred itself to another Leeds Law firm Lupton Fawcett, leaving the conveyancing business on its own.
10 partners, 17 solicitors and 11 support staff went to Lupton Fawcett, leaving a couple of solicitors and the rest clerks at Fox Hayes. Hey presto a couple of weeks later they go under.
Typical quote from " one manager at another Leeds law firm.To anyone who has worked for law firms as a lowly clerk these comments will come as no surprise being well used to the attitude towards unqualified staff.
Interesting to note that at the end of the last financial year the turnover was £10.1 million.
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Debbi McCauley | 20-Jan-2009 1:09 pm
Fox Hayes callous partners
I used to work for this "firm" (ha!) in Support Staff - fortunately for me I left in 2006 due to a medical condition contracted at the firm (and for which I received no help or assistance whatsoever). All their interest was in raking in the dosh to fund their posh new building - the place was a sweatshop, no more no less. Philip Drazen at the End of Year Meeting swore "Work Hard for Us and We'll Look After You".
I profoundly hope and trust that he and his pals meet the murky end they deserve.
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Anonymous | 20-Jan-2009 2:05 pm
diSgusting!!
Those who have mocked about this article, I think you are disgusting. Many Jobs have been lost - think of those with mortgages and children.
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Anonymous | 20-Jan-2009 4:55 pm
Hardly surprising!
It was only a matter of time - they have followed the city's football team - boom and bust!!
And, again using the football analogies, just as Peter Ridsdale is now elsewhere building debts up for another football team - no doubt the partners here will be the same. It's just a shame that they cannot be relegated from Partner status back to clerks themselves and then receive the same treatment as their staff, from whom I understand (I am an ex-employee left 2007) were treated disgracefully in the last few months with no confirmation of what was likely to happen until the very last day when the administrators appeared on site.
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Anonymous | 20-Jan-2009 9:20 pm
Volume conveyancing is not the future
It just goes to show - good business is not all about turnover and profit. Its basis is quality advice and client care. Turn over and profit will always follow. Goodluck to all those redundant FH employees. As one door closes hopefully another will soon open and you may enter a nicer room!
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