BEGBIES TRAYNOR ADMINISTRATORS have managed to save regional solicitor firm Eastleys Solicitors through a pre-pack sale.
Anthony Fanshawe and Francis Savage were appointed on 3 August when the firm ran into financial difficulties.
The administrators managed to sell the solicitor firm to limited liability company Recompense, which will save the entire workforce consisting of 33 employees and two partners.
Eastleys Solicitors, which has offices in Paignton and Brixham, had a turnover of about £1.2m in 2011 and specialises in private client work as well as property conveyancing and commercial litigation.
Fanshawe said: “While the business had run into financial difficulties, we wanted to ensure we secured the jobs of staff and put arrangements in place to enable what is a long-standing practice to continue to undertake its work.
“A sale-out of administration was the best solution for the business and for those working within the firm.”
A pre-pack sale is where a business is marketed prior to entering an insolvency process and sold immediately after administrators’ appointment. However, some institutes that regulate practitioners determine a pre-pack is any sale of a collapsed company that takes place within 7 days of it entering administration.
The fast-track move is a bold departure from the norm, as a probe would normally only begin several months after administrators had finished their own enquiries
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