Law firm owner on brink of administration

The owners of Leeds-headquartered law firm Simpson Millar are set to call in administrators.

Fairpoint Group, who have been struggling for some time, have filed a notice of intention to point administrators, they announced this morning.

However Fairpoint have arranged a funding deal that will allow Simpson Millar to trade independently.

In July it was announced that AIB had assigned its debt due from Fairpoint to Doorway Capital, with Doorway providing a funding facility of up to £5m to the law firm.

Fairpoint said it will allow the firm and its subsidiaries to continue to trade as going concerns, and “take advantage of the growth opportunity presented by the size and highly fragmented nature of the consumer legal services market-place.”

In a statement, the law firm said: “Whilst we are saddened that this has been a difficult time for Fairpoint Group, it is business as usual at Simpson Millar and we do not anticipate any significant changes as a result of Fairpoint Group’s announcement.

“Simpson Millar would like to emphasise that its’ primary concern is the continued protection of its clients’ interests and service of its clients’ needs. The client services that Simpson Millar provides and the protections its clients enjoy are not in any way affected by the announcement by Fairpoint Group plc.”

Outside the legal business however, Fairpoint is not so confident, saying that an onerous lease on the group’s head office, committing it to £1m annually for the next four years, is putting strain on its finances.

The board concluded that the holding company of the group, Fairpoint Group plc, is no longer able to continue trading as a going concern and has filed notice of intention to appoint administrators.

Unless financial circumstances change, the board intend to appoint administrators within 10 business days. The secured creditor can, however, appoint administrators without the requirement for notice.

Heaquartered in Leeds, Simpson Millar have offices in Manchester, Bristol, London, Lancaster, Cardiff and Birmingham.