Pre-pack deal saves 540 jobs at law firm
Law firm Plexus has been bought by Axiom in a pre-pack deal which secures 540 jobs.
The deal comes exactly one month after TheBusinessDesk.com revealed the law firm had filed a notice of intention to appoint administrators following a u-turn by its investors who had previously agreed to inject £5m emergency funding.
As part of the transaction, 520 employees and 20 fixed share partners have transferred to Axiom. No redundancies have been made, although some Plexus employees have chosen not to move over.
Plexus was backed by private equity firm Origin Equity in 2019, but has been beset with problems since then. The firm has previously blamed the need for additional funding from its investors on “the ongoing impact of serious financial irregularities” discovered after the acquisition four years ago.
Contingent fees were over-recognised in the group’s accounts leading to an overstatement of profits in 2020 and 2021. Its financial position was also hit by Covid-19 and declining sales.
It is the second rescue deal by Axiom in just six weeks, having bailed out shipping law specialists Ince in another pre-pack deal in late May.
Leeds-headquartered defendant law firm Plexus had seven offices in the group – Chelmsford, Edinburgh, Evesham, Leeds, London, Liverpool and Manchester – split across its English company Plexus Legal LLP and its Scottish division Plexus North LLP.
Interpath were appointed administrators with James Clark and Rick Harrison handling Plexus Legal LLP and Plexus Law Limited, and James Clark and Blair Nimmo taking on Plexus North LLP.
Clark said: “Undoubtedly, it has been a very difficult few years for Plexus, and so we’re pleased to have been able to conclude this transaction which not only secures the future of the business, but importantly secures 540 jobs without any need for redundancies.
“Right from their initial expression of interest, Axiom were determined and committed to acquiring the practice, safeguarding jobs and importantly, helping to protect client interests.”
London-headquartered Axiom DWFM was formed from the 2021 merger between Axiom Stone and DWFM Beckman and has bases in Birmingham, Bristol, Swindon and Edgware. It had 19 partners and fewer than 150 staff, but will employ around 1,000 people following the Plexus takeover.
