Manchester-based Linder Myers is understood to have put up to 50 jobs under a redundancy consultation on recommendation from Assure Law, which rescued the firm from administration earlier this year.
Support staff are most affected but fee earners are also at risk of redundancy by the 30-day consultation period.
The process was kick-started when Assure Law invested in the firm as part of a debt-restructuring deal and made Tony Stockdale chief executive (27 March 2014). Following its investment, Assure implemented a full-scale ongoing review of Linder Myers to identify potental cost savings.
The firm said that one of the outcomes was the redundancy but refused to confirm the figure, reported as 50 by The Business Desk.
Linder Myers had filed its notice of intention to appoint administrators at the Manchester District Registry Court on 6 February (6 February 2014) but managed to avoid administration through a debt refinance agreed between the firm’s bank, RBS, Assure Law and its creditors (12 March 2014).
It had spent the past two years acquiring firms but found itself on the hunt for a merger when earier this year. By February the firm was facing issues including being placed into a distress team at the bank, high property costs and a weighty January tax bill.
The firm said the consultation was the first time the firm had ever put roles at risk but that Assure had recommended it. It added that the firm had undergone a period of dramatic growth in over the past two years and was in the process of working out how to integrate its long list of acquired firms (13 February 2014).
Chief executive Tony Stockdale said: “As a result of the recent deal between Assure Law and Linder Myers, a thorough review of the size and shape of the business has been undertaken.
“The outcome of this is that a number of fee earning and support roles have entered into a 30 day period of consultation which is likely to result in a number of positions being made redundant. We can make no further comment at this stage.”