Administrators from accountancy firm RSM Tenon have been appointed to insolvent law firm Challinors LLP.
Andrew Hosking and Simon Bonney of RSM Tenon, which itself entered administration yesterday, were appointed as joint administrators to Challinors on 21 August.
Challinors, which operates across multiple locations across the Midlands, entered administration following a statutory demand that was issued by a creditor against the partners of the firm.
Hosking, restructuring partner at RSM Tenon, said: “All possible steps have been and will continue to be taken to minimise the impact of the administration on clients and protect their confidentiality.
“We tried to sell the business as a whole but after limited interest it was clear, the disposal could not be achieved for the appropriate considered value and in the necessary timeframes.
“Therefore, regrettably the business had to be broken up into several constituent parts. The sales of the various parts of the business were made pre-appointment.”
Prior to Challinors entering administration, a “number of sale processes” were completed, with remaining parts of the business being disposed of immediately following the administration order.
As a result, a “substantial part” of the firm’s operational functions has been sold to various law firms, including Clark Willmott and Shoosmiths. As part of the client protection work, all Challinors’ live client files were transferred to the new firms prior to the administration.
Hosking said: “Unfortunately we have had no choice but to make 46 redundancies at this present time, but in most cases, these employees have already been able to secure jobs with the purchasers in accordance with pre-appointment sales of business and assets.”