The jobs of nearly 80 staff working for failed Bristol law firm Burroughs Day have been saved following its sale out of administration to city rival Metcalfes Solicitors.
The sale, which also protects all client interests, took place immediately after Burroughs Day – which can trace its roots back to 1829 – went into administration due to rising costs and falling turnover. Burroughs Day’s office in Portishead is included in the deal. 
The sale to Metcalfes, which was formed through the 1989 merger of long-established Bristol firms F.E. Metcalfe & Co and Peter Bennett & Co, was completed by corporate recovery firm Quantuma.
It followed the appointment of Andrew Hosking and Sean Bucknall from Quantuma as administrators on Tuesday – the latest in a series of law firm administrations.
With major changes in the legal sector brought on by rising costs, tighter regulation and ever-tougher competition sparked by a raft of new low-cost entrants, many law firms are facing financial problems – especially in January when partners’ tax payments are due at the end of the month.
Regional law firm Ashfords was appointed by Quantuma as solicitor managers on the Burroughs Day administration – joining a lengthening list of similar deals it has advised on.
Quantuma partner Andrew Hosking said: “Despite [Burroughs Day] being a strong mixed-practice firm with a long history, a combination of declining turnover and a rising cost base has eroded profitability such that the current business was not viable without significant additional working capital.
“We have been able to affect an orderly transfer of the business to Metcalfes Solicitors and the ongoing protection of legal services to all clients.”
According to Quantuma, Burroughs Day had a £4.2m turnover in the 12 months to April 31, last year.
Burroughs Day can trace its roots back to 1829 when Benjamin G. Burroughs practised law at 1 The Mall, Clifton.
In 2010 it became a founder member of QualitySolicitors, the UK’s biggest branded legal network of law firms, and dropped the Burroughs Day name.
However, last May it left the troubled network, becoming an LLP and reverting back to its original name in the process.
The move coincided with its relocation to modern offices in an historic Grade II listed building in Queen Square – directly opposite Metcalfe’s office.
At the time senior partner Hugh Balchin said: “The time is now right for Burroughs Day to build on its own long-established, excellent reputation in the West Country, rather than being part of a national umbrella marketing network.
“We have always been client-centred and independent. Our new brand reflects and embraces those long-held values.
“This is an exciting new chapter for our partners, staff and clients. They will benefit from the dynamism and innovation that we have within the firm.”
Ashfords’ specialist regulatory team, led by partner Sam Palmer, is providing Quantuma with regulatory guidance and support, with Sam and Crispin Jones appointed as joint solicitor managers to oversee the safe transfer of client files and client monies.
The Ashfords team is regularly appointed to this role by administrators of professional services firms to ensure that clients’ interests are protected.
Sam Palmer said: “This is a very challenging time for law firms in particular, and we are pleased to be able to help all parties move forward and find the best possible solutions that protect the interests of clients, employees and other key stakeholders.
“We are pleased to be able to confirm [in this case] that all client protections are in place and all client monies are safely being transferred with client instructions to the newly merged firm so as to ensure that all client interests continue to be protected.”
Pinsent Masons advised the joint administrators on the transaction. Partner Steven Cottee said: “We are pleased to have advised on this transaction, which has resulted in the preservation of a number of jobs. It illustrates the financial difficulties many law firms are facing particularly at this time of year.”
In the same month last year Andrew Hosking and Sean Bucknall of Quantuma were appointed joint administrators to major international firm King & Wood Mallesons and in the past five months it has handled – along with Ashfords – the administrations of LA Law in Brighton, London firm Gregsons Solicitors, Sovereign Solicitors in Yorkshire and Almonds Solicitors in Manchester.
The acquisition of Burroughs Day is the latest in a long line of takeovers and mergers for Metcalfes.
