DWF set to return to table for troubled Cobbetts

AMBITIOUS law firm DWF is set to resurrect its interest in troubled rival Cobbetts and a deal could be concluded as early as next week.

Merger talks between the two firm collapsed last year as uncertain market conditions were blamed, but sources close to DWF, say interest in Cobbetts – which put itself up for sale yesterday remains.

Cobbetts and DWF both have significant presences in Leeds, with Cobbetts employing around 190 people in the city.

DWF, headed by Andrew Leaitherland, has a long-stated ambition to be a top 20 firm. Since the failure of the Cobbetts tie-up it has completed a number of deals.

It merged with Scottish commercial law firm Biggart Baillie last year, and earlier this month announced a combination with £20m tunrover insurance firm Fishburns, giving it a presence in Dublin and the South West for the first time.

DWF declined to comment.

TheBusinessDesk.com understands Cobbetts’ bankers Lloyds were keen for the merger to go ahead and were concerned over the size of the firm’s debts in a trading environment where the firm was seeing little growth.

Insolvency expert David Wilson, senior partner for Begbies Traynor in Yorkshire and the North East, said he expects more firms to find themselves forced to seek a buyer.

He said: “These are testing times for professional services generally, and so it is not entirely surprising to see that another major name has fallen into difficulties.

“In recent years, we have seen a lot of law firms, accountancy practices and other professionals come to us having overspent on ambitious expansion plans which became unsustainable when the market turned.

“Businesses with a heavy reliance on property or one-off transactional businesses – as is the case with Cobbetts – have also been particularly hard hit.

“As a result, there is still great pressure for further consolidation across all professional sectors so Cobbetts is unlikely to be the last firm to seek a buyer in this way.”

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