Challinors sells personal injury work to rival

TROUBLED Midlands law firm Challinors has sold its personal injury files to Liverpool-based rival SGI Legal.

Legal sector watchers suggest other parts of the struggling practice – which is based in Birmingham and the Black Country – could be off-loaded in the next few days.

The deal – for an undisclosed sum – involves all work in progress, including serious injury, employers’ liability and public liability claims.

None of the partners of Challinors will be transferring to SGI Legal.

Challinors went into administration at the end of last month with debts estimated to be around £11m.

Two ex-clients allege they are owed a total of £650,000 in loans they made to the firm’s partnership. One former client has issued a bankruptcy petition against Challinors’ senior partner Paul Griffiths.

SGI Legal – which has been granted alternative business structure (ABS) status – is a personal injury specialist. It will shift all the Challinors files to its Liverpool office.

Managing partner Simon Gibson said: “Our structure and resources have enabled us to respond swiftly to the opportunity that arose due to Challinors’ difficult circumstances.

“We have been pleased to work with the firm’s partnership and the likely administrators to ensure a smooth transition for clients whose best interests will remain our top priority.”