They might be the last kind of company you’d expect to need insolvency advice, but struggling law firms have been urged to seek help by R3 – the Association of Business Recovery Professionals.
In the past year or so, the legal landscape has changed significantly, with the so-called ‘Tesco law’ making it easier for legal services to be offered in non-traditional settings such as supermarkets.
However, R3 warns that this has greatly increased levels of competition between these non-traditional organisations – often with considerable funding and marketing behind them – and traditional lawyers in an already-crowded market.
“New specialist firms will begin to emerge, and they will be difficult for the high street to compete with,” says R3 president Lee Manning.
“We would urge any firms that are worried about their financial future to seek professional restructuring advice before it is too late.”
With prompt insolvency advice, it may still be possible for struggling law firms to undertake corporate recovery, refocusing their business on profitable areas and resisting the influx of ‘Tesco law’ companies currently cannibalising the market.