Weightmans linked with NW Semple Fraser office

WEIGHTMANS, the North West law firm, is reportedly ready to take on the Manchester office of troubled Scottish law firm Semple Fraser.

Semple Fraser, which has 11 lawyers at its Manchester office on Portland Street, is poised to become the latest insolvency in the legal sector.

A notice of intention to appoint administrators has been filed amid tough trading in a flat-lining economy with the firm’s key sectors, property and construction, particularly challenging.

In 2011 it lured Simon Wallwork, head of corporate at Manchester firm Pannone.

The Glasgow and Edinburgh firm, which had 21 partners and fee income of around £11m, opened its Manchester office in October 2009. One of its major real estate clients is supermarket giant Tesco.

In a statement Semple Fraser’s managing partner Simon Etchells said administration was the only option.

He added: “Following an exhaustive review of the business, the partners have decided that the business is no longer sustainable.”

According to sources Weightmans, which has its Manchester office at Piccadilly Place, is in talks to take on entire Semple Fraser team. Reports in the legal press link the Glasgow office with Maclay Murray & Spens and the Edinburgh office with Dundas & Wilson. 

Commenting on Semple Fraser’s problems in the wake of the demise of Manchester firm Cobbetts, Dean Watson, partner at insolvency firm Begbies Traynor said:  “We have noticed an upturn in professional services firms in financial distress recently and are likely to see this continue.

“The high-profile cases of Cobbetts and Halliwells clearly indicate that the legal and general professional sector is far from immune to the effects of the economic downturn.

“In our recent experience of dealing with law firms, the main issues have been the contraction in the market for commercial and property legal services and the knock-on effect on the viability of the businesses concerned.

“The use of the administration process can provide a valuable tool to carry-out this restructuring process with the ability to protect the business, assets and employees while a longer-term solution is sought.”