Scots firm Tods Murray called in the receivers last weekend after years of falling profits. Staff and partners are to transfer to Shepherd & Wedderburn, although around 50 jobs are expected to go.
The firm turned over £12.4m last year - half what it managed in 2005/06 when it moved into trophy offices at a cost of £1m a year. It soon found it could ill afford this (Halliwells, anyone?) when banking work dried up after the crash, and the vultures started circling. Its Executive Partner felt obliged to write an open letter in 2009 to reassure the market that the firm was "financially secure". And it limped on for another five years before pulling the plug.
The Scottish market hasn't had it easy over the last few months. Semple Fraser found itself in the same predicament after moving into swanky offices. All of its partners found comfortable new homes for themselves last year, whilst leaving their staff and creditors to hang. Dundas & Wilson was on its knees but managed to persuade CMS to pick it up last Christmas, albeit at a cost of 60 jobs. Expect more to follow.
Tods Murray's website notes that administrators were appointed on 3rd October and that staff have moved to S&W. It still boasts the "top tier" and "top ranked" logos from Legal 500 and Chambers. Both these organisations also rated Challinors when it went bust last year, despite the firm being on the SRA's watchlist. Presumably they'd accredit a corpse as long as it was wearing a nice suit and looked like it might once have known a bit about law.
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The firm turned over £12.4m last year - half what it managed in 2005/06 when it moved into trophy offices at a cost of £1m a year. It soon found it could ill afford this (Halliwells, anyone?) when banking work dried up after the crash, and the vultures started circling. Its Executive Partner felt obliged to write an open letter in 2009 to reassure the market that the firm was "financially secure". And it limped on for another five years before pulling the plug.
The Scottish market hasn't had it easy over the last few months. Semple Fraser found itself in the same predicament after moving into swanky offices. All of its partners found comfortable new homes for themselves last year, whilst leaving their staff and creditors to hang. Dundas & Wilson was on its knees but managed to persuade CMS to pick it up last Christmas, albeit at a cost of 60 jobs. Expect more to follow.
It's all Westminster's fault. |
Tods Murray's website notes that administrators were appointed on 3rd October and that staff have moved to S&W. It still boasts the "top tier" and "top ranked" logos from Legal 500 and Chambers. Both these organisations also rated Challinors when it went bust last year, despite the firm being on the SRA's watchlist. Presumably they'd accredit a corpse as long as it was wearing a nice suit and looked like it might once have known a bit about law.
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