Creditors of the Glasgow-based law firm McClure Naismith which went into administration last month are unlikely to recover much more than a “small dividend” when the company’s affairs are finally wound up, one of the joint administrators has warned.
Tom MacLennan of FRP Advisory said that McClure Naismith, one of Scotland's oldest commercial law practices, owed around £2 million to suppliers, the HMRC and its bank when it went into administration two weeks ago, but the full extent of the firm's debts would only become clear once landlord and employee claims (such as redundancy payments in lieu of notice) had been resolved.
That process would likely take several months, at which point the total debt of the company would likely be “substantially” more than the £2m of debt already accounted for.
Of McClure Naismith’s 135 person workforce, 95 have now found new jobs since the firm went into administration. Of the firm’s 26 partners, only one, Alistair Croft, who specialised in dispute resolution from the firm's London offices, has yet to find a new firm. Most of those still to find a new job are non-legally qualified support staff.
Five partners have gone to Harper Macleod, five to Maclay Murray Spens, four to London-based Marriott Harrison, three to Burness Paull, two to Wright Johnston & Mackenzie with one each going to Morisons, Excello Law, HBJ Gateley, Morton Fraser and TWM Solicitors.
In addition to those who have found new jobs, 13 staff have been retained by the administrators to help with transitional matters.
MacLennan said: “We are delighted that a large percentage of McClure Naismith partners and staff have been placed with other law firms and businesses, thus ensuring continuity of client service and of employment for more than two thirds of the employees. We are very grateful for those businesses that have worked closely with us to agree deals and find solutions in a very short time scale.”
McClure Naismith’s Glasgow headquarters are expected to be vacated by the end of the month, while the firm’s smaller London and Edinburgh offices were vacated last week.
A creditors' meeting is expected to be held in Edinburgh or Glasgow in late October. It is likely to be around 18 months before the administration of the firm is settled.
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