The grim details of Manches’ downward slide are revealed on TheLawyer.com today, exposing an unpaid tax bill which forced the firm into administration prior to its takeover by Penningtons.
Penningtons ended up paying just £500,000 for Manches’ work in progress despite originally setting out for a merger of equals. When the two firms first started talking in September Penningtons was unaware that Manches was close to exceeding its £6.4m overdraft facility.
As The Lawyer reveals today, Manches also had an unpaid tax bill worth £625,000 and partner’s personal tax liabilities totalling £1.1m. With its bank refusing to extend the overdraft Manches found itself unable to pay its indemnity insurance bills.
It was a lethal cocktail that resulted in HMRC issuing a notice of action against the firm and spelled the end for Manches as an independent entity.
Also on TheLawyer.com:
- One of the government’s leading lawyers, HM Revenue & Customs (HMRC) general counsel Anthony Inglese, is to retire
- Find out how Shell legal director Peter Rees QC is switching litigation control away from external counsel to a unified global team of in-housers
- And United Biscuits general counsel Simon Rose on safeguarding the Royal cakes and receiving death threats over the price of Space Raiders crisps