Fairpoint to dispose of IVA business

Fairpoint Group, the listed consumer professional services company, is in talks to sell its IVA business, so that it can focus on its legal services business Simpson Millar.

While Simpson Millar is based in Leeds, around 200 staff work for the IVA business, based at the group’s Fairclough House headquarters in Addlington, Lancashire.

Fairpoint has said that it is seeking an exit from its lease at Fairclough House as the disposal to a third party progresses.

Fairpoint suspended trading in its shares on AIM last month, after bank AIB refused to provide ongoing financial support.

This meant the group was unable to sign-off the audit of its annual report and accounts for 2016, and was not be in a position to publish its annual report and accounts by the end of June, as required by AIM rules.

Then on July 3 AIB Group notified the group that it had assigned debt due from Fairpoint to Doorway Capital.

The specialist provider of capital to law firms has also provided a working capital funding facility of up to £5m to Simpson Millar.