Halliwells/Hill Dicks talks enter late stages
TALKS were continuing today for crisis-hit law firm Halliwells to transfer its entire business to rival Hill Dickinson.
Halliwells, the top 50 law firm, is expected to formally go into administration and be dissolved once a deal has been reached. Talks between the two firms have been ongoing for several weeks, but stepped up a gear in the last week.
On Thursday Halliwells, which has offices in Manchester, Liverpool, Sheffield and London filed court papers giving notice that it intended to appoint an administrator.
In a statement the firm said this had been done to provide stability while a deal was thrashed out.
It added:”The underlying business remains strong and has attracted interest from a number of parties.
“To provide Halliwells LLP with a period of stability to facilitate this transfer the firm has entered into a moratorium to protect the interests of clients and other stakeholders and to ensure business continues as usual.”
Dermot Power of BDO, one of the North West’s best-known insolvency practitioners, is expected to be appointed administrator.
Halliwells is just four years in to a 25-year lease on 3 Hardman Square, and while Hill Dickinson is keen to move to Spinningfields, it remains to be seen whether it will honour the original Halliwells lease or seek to renegotiate on more favourable terms.
Halliwells has also sub-let some of the space at 3 Hardman Square to mutual insurer Ecclesiastical, accountants Campbell Woolley, corporate finance house Ford Campbell and turnaround fund NorthEdge, all of whom will be keen to clarify their positions.
The crisis at Halliwells, which is the highest profile law firm to fail, has sent shockwaves through the North West business community. The mood was summed up by one watcher, who said: “Everyone’s watching now for what happens next – hopefully they can find a solution that protects all the jobs.”
Halliwells, which employs around 700 people blames its predicament on high property costs and the economic downturn which has hit profits .It owes Royal Bank of Scotland around £20m and has been hit by a string of partner departures over the last year.
