300 Regional Law Firms at Risk of Failure According to Latest R3 Survey

Latest research published by insolvency trade body R3, of which Mitchell Charlesworth Partner Jeremy Oddie is North West Chairman, suggests that almost 300 legal firms based in the North West are at risk of failure in the next 12 months.

Jeremy Oddie

The data was compiled using the Bureau van Dijk 'FAME' database and also shows that the North West has now surpassed the South East to become the main legal centre outside London.

There are now 992 legal businesses in the North West (up from 862 last year) of which, nearly 30% are now considered at risk.

North West Chairman of R3 and Mitchell Charlesworth Corporate Recovery and Insolvency Partner, Jeremy Oddie (pictured left) said "The North West is now established as the most important regional centre for legal services but there are signs that it is a crowded marketplace and law firms are under pressure from all sides.

"In the wake of the recession, clients are demanding better value. Meanwhile the Legal Services Act has opened up the market to greater competition from non-law firms, while the Jackson reforms, which came into force in April, are having an impact on the personal injury sector.

"Law is one of the most traditional business sectors but firms are being forced to innovate in order to survive."

For more information about Mitchell Charlesworth's Corporate Recovery and Insolvency services, contact Partner Jeremy Oddie on tel: 0161 817 6100 or email: jeremy.oddie@mitchellcharlesworth.co.uk.

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