Simpson Millar has announced that it will be undergoing a restructuring and redundancy consultation, affecting more than a fifth of the firm’s staff.
The firm employs more than 500 staff and has said this consultation could affect between 100 and 120 jobs. The 45-day consultation will look at a mixture of fee-earning and support staff roles throughout Simpson Millar’s 13 UK-only offices.
Simpson Millar was previously owned by Fairpoint Group, but the company’s financial woes caused it to split from the firm. At that time, Doorway Capital came in with a £5m investment into Simpson Millar.
It will add a further £2m to the firm’s accounts throughout 2018 and pledged further investment beyond that.
Cox said: “It is never an easy decision to put members of the team at risk of redundancy. The business has been starved of investment over the last 3 years under its ownership by Fairpoint Group PLC, which has resulted in a fall in projected revenue for 2018.
“Addressing the current unsustainable cost base of the firm will deliver the sound financial platform necessary to grow and take full advantage of forthcoming changes in the consumer legal services market.”
Data from The Lawyer UK200 shows that Simpson Millar employed 239 fee-earners, 115 of which were qualified lawyers, with 50 partners.
The firm’s turnover for the 2016/17 financial year was estimated at £32.5m with net profit thought to have risen to around £1m.
Doorway Capital director Mark Salem said: “As part of its necessary restructuring plan, it is our intention to provide Simpson Millar with the financial and strategic support needed to ensure it is best placed to grow and take advantage of future opportunities.”
Pinsent Masons announced its own redundancy findings had trimmed 78 staff taking voluntary redundancy last month, while BLM cut 21 fee-earning and support roles from its Southampton office in October.