No-win, no-fee law firm files notice of intention to appoint administrator

A no-win, no-fee law firm is on the verge of administration, putting around 20 jobs at risk.

Liverpool-based Next Gen Solicitors has filed a notice of intention to appoint an administrator, TheBusinessDesk.com has learnt.

The notice provides a 10-day moratorium from other creditor action and is designed to give a business the opportunity to find a way to prevent entering administration.

Next Gen, based in the Exchange Station building, specialises in financial mis-selling cases, including PPI claims, tenancy deposit disputes, and mis-sold pensions and car finance.

The company was set up in 2016 by director Karen Smith, and Mike Fong was appointed managing solicitor two years ago.

In the last accounts filed at Companies House, for the year to February 28, 2021, Next Gen Solicitors had net liabilities of £300,000.

Next Gen’s assets are subject to fixed and floating charges from litigation funder Fenchurch Legal.

If a law firm goes into administration, it is required to pass on its files and contact its clients, as part of the process, a spokesman for the Solicitors Regulation Authority said.

Next Gen Solicitors has approached Manchester-based insolvency expert Begbies Traynor, due to the firm’s experience, particularly Paul Stanley and Dean Watson, in handling cases involving law firms.

Next Gen Solicitors has been contacted for comment.