The future of Plexus has been secured following a sale of the business and certain assets out of administration to Axiom Ince Limited.
James Clark and Rick Harrison of Interpath Advisory were appointed joint administrators of Plexus Legal LLP and Plexus Law Limited, and James Clark and Blair Nimmo of Interpath Advisory were appointed joint administrators of Plexus North LLP on 7 July 2023.
Headquartered in Leeds, Plexus is a defendant law firm with a national footprint which specialises in the handling and litigation of insurance claims. Plexus Legal LLP operates via six offices in Chelmsford, Evesham, Leeds, London, Liverpool and Manchester and is regulated by the Solicitors Regulation Authority (SRA).
Plexus North operates from one office in Edinburgh and is regulated by the Law Society of Scotland (LSS). Plexus Law is the limited company set up under the Alternative Business Structure as part of the 2007 legal reforms which allow law firms to be owned by non-lawyers.
The group was incorporated in 2017, acquiring certain business and assets of the former legal business Paribas law. Following the acquisition, a new management team was introduced to the business which thereafter detected financial irregularities in relation to historical financial performance. After a forensic review, it was discovered that contingent fees were over-recognised in the group’s accounts leading to an overstatement of profits in FY20 and FY21.
Filing of the FY21 statutory accounts was delayed as a result of the forensic investigation and the arising adjustments reduced previously reported profits to a loss-making position. This prompted a significant cash requirement which was then further exacerbated both by the impact of COVID-19 and declining sales in an increasingly competitive marketplace.
As a result of this, Interpath Advisory was approached to examine the options available for Plexus including new investment or sale. A number of parties expressed an interest in the business, including Axiom.
Immediately following their appointment, the joint administrators concluded a sale of the businesses and certain assets to Axiom. As part of the transaction, 520 employees and 20 fixed share partners have transferred to Axiom.
James Clark, Managing Director at Interpath Advisory and joint administrator, said: “Undoubtedly, it has been a very difficult few years for Plexus, and so we’re pleased to have been able to conclude this transaction which not only secures the future of the business, but importantly secures 540 jobs without any need for redundancies.
“Right from their initial expression of interest, Axiom were determined and committed to acquiring the practice, safeguarding jobs and importantly, helping to protect client interests.”
James Clark added: “We’d like to thank all stakeholders for their work in delivering this complex transaction, and wish everyone at Axiom all the very best for the future.”
