Law firm sold in pre-pack deal for just £200,000
A Midlands law firm that went into administration owing millions to creditors was sold in a pre-pack deal two days before Christmas for just £200,000, TheBusinessDesk.com understands.
Cartwright King owed creditors almost £6m when administrators from BDO were instructed on December 23. The firm, which was sold on the same day to AWH Acquisition Corp, operated across the UK, employing 80 people. It was one of the UK’s largest providers of Legal Aid services and had 11 offices, including in Birmingham, Derby, Leicester, Northampton and Nottingham.
AWH sealed a deal to buy Cartwright King on December 23, saving 80 jobs. Creditors who will go unpaid include Nottingham City Council, which the firm owed almost £12,000 in business rates.
Mark Thornton of BDO said in December: “Unfortunately, difficult trading conditions alongside issues caused by Covid-19 and the continuing court backlogs resulted in cashflow issues for the firm from which it was unable to recover. We are pleased to have secured the business and assets sale of Cartwright King, a business which provides a vital service to the public, ensuring continuity of legal cases for clients and the preservation of employment for all staff. This is also the best outcome for creditors in the circumstances.”