Hextalls has been bought out of pre-packed administration with LG partner Steve Cottee acting for Begbies Traynor administrator David Hudson and London firm Judge Sykes Frixou acting for the firm.
It is understood that Hextalls insurance partner Alex Padfield is heading the new outfit, which intends to focus on insurance and litigation.
Hextalls Ltd, which is owned by a small group of partners in the original firm, has bought the business and the partners have been informing clients of how the deal has worked.
Cottee said the administrators and the firm have been working closely with the Law Society, which has approved the new venture.
Cottee added that the firm had opted for pre-pack administration because it allowed it to set up a new business that can collect outstanding payments from clients of the original venture. This money will be used to pay off creditors and, as the firm has the cooperation of creditors, should avoid the risk of legal action.
Hextalls has lost a number of partners to rival firms this year, with former chairman and chief executive Matthew Clarke leaving for Elborne Mitchell. Kennedys took a team of eight from the firm, including personal injury partners Joe McManus and Charles Martin.