A West Country law firm has ceased trading after a deal to rescue the business collapsed. BLB Solicitors, founded more than a decade ago, had offices across Bath, Bristol, Swindon, Almondsbury, Trowbridge and Bradford-on-Avon.
Administration and Failed Sale
The legal practice appointed administrators from The Insolvency Company, part of Sumer Group, at the end of April. However, a deal to sell the firm fell through, leading to the closure.
Before the company's collapse, administrators worked with BLB's leadership team to explore options to save the business and protect jobs. Despite an agreement in principle, the potential buyer withdrew, resulting in all staff being made redundant.
Administrator's Statement
Joint administrator Gareth Buckley, head of insolvency at The Insolvency Company, said: "We worked hard to secure a sale of the business as a going concern, which would have preserved a significant number of jobs, and we had a deal in place. It is deeply disappointing that it fell through at a late stage. Due to the timing and lack of available funding there was no alternative other than to cease trading and dismiss the workforce. Our immediate priority now is to ensure clients and creditors are kept informed and to support employees through the process of making claims to the Redundancy Payments Service."
Regulatory Constraints
Because the administrators are not solicitors, under Solicitor Regulation Authority (SRA) rules it was not possible to trade the firm while seeking a new buyer. The firm has been shut permanently and will not reopen, according to its website.
The administrators are now looking to sell BLB's assets and have said they will "contact creditors in due course" with further information regarding the progress of the administration.
Client Safeguards
"The Insolvency Company is liaising closely with the SRA to ensure that the interests of the clients of the firm are safeguarded during this process," the administrators said in a statement. "The joint administrators will continue to work closely with all stakeholders to support a smooth transition and deliver the best possible outcome for creditors, employees and clients of the firm."
The SRA has appointed law firm Stephensons Solicitors LLP to collect files belonging to former BLB clients and keep them safe. Any enquiries regarding BLB should be directed to interventions@stephensons.co.uk.
