Legal news: Keoghs linked with ailing Parabis & more
KEOGHS, the national law firm based in Bolton, is reportedly looking at buying some units of struggling rival Parabis, which owns Plexus Law.
According to the Sunday Times, Parabis, one of the first legal firms to receive City investment under the “Tesco law” changes three years ago, is to be broken up and sold by its private equity owner, Duke Street Capital, after struggling to pay its debts.
Sources told the newspaper that Duke Street, which bought Parabis for about £200m in 2012, has held talks with potential buyers including Bolton firm Keoghs, for Plexus Law, its personal injury division.
Irwin Mitchell was also linked, but the firm has since denied any interest in a deal.
In August 2012, Parabis became the first private equity-backed organisation to be granted an ABS (Alternative Business Structure) licence by the legal regulator the Solicitors Regulation Authority.
Like Parabis, Keoghs, operates as an ABS, and it is backed by the mid-market investment firm LDC.
Parabis’ accounts show that it has had a tough time of late. It has deferred debt payments to Duke Street and breached banking covenants. It remains profitable though, and made £5m in the year to March 2014, down from £8m the year before.
Plexus Law has offices on the 21st Floor of City Tower in Manchester.
::
YORKSHIRE family law firm Lake Legal is set to launch in Manchester.
The firm will be based in Bartle House, Oxford Court, and will be creating four jobs in the next 12 months as it recruits in the North West.
This firm has already employed three lawyers to its Leeds office in 2015.
Lyn Ayrton, managing partner of Lake Legal said: “After six years of growth in Yorkshire we decided it is time to expand across the Pennines.
“We have steadily grown a client base in and around Manchester, and it is the right time to open an office to support further growth. I believe there is a need for a small specialist practice in the city.”
Ms Ayrton launched Lake Legal in 2009, after having worked at Addleshaw Goddard and Gordons, pre-merger.
