Incasso, the debt recovery arm of Manchester-based law firm Cobbetts, has been saved from administration by Midlands firm HL Legal, meaning ownership of the brand will now be moving to Redditch.
KPMG’s insolvency practitioners have been working to restructure and recover Cobbetts since it entered administration a few weeks ago, and earlier in February the law firm itself was sold to DWF as part of a pre-pack administration process.
Now Incasso, which was 100%-owned by Cobbetts, has also found a new home at the Worcestershire-based HL Legal, highlighting the health of the Midlands debt recovery industry.
Mark Firmin, head of KPMG’s UK regions restructuring practice, and joint administrator to Incasso, said: “Following our appointment as administrator to Incasso, the Cobbetts-owned debt recovery company, we are pleased to provide some certainty for the business and to have concluded the transfer of all the remaining Cobbetts business and assets.”
Some 52 members of staff working for Incasso in Leeds are now expected to keep their jobs, and the deal also includes all of the firm’s assets, business and clients, meaning the transition to new ownership should not disrupt any operations for those whose affairs are already being handled by Incasso.
DWF’s buy-out of the troubled Cobbetts was rushed through in just 17 days, according to The Lawyer, which is unsurprising given that the two firms were considering a merger as recently as 2011.
However, the deal left out Incasso, as well as Cobbetts’ finance litigation team, the latter of which quickly found a home at Walker Morris.
With HL Legal taking on Incasso, it seems there are no remaining loose ends – meaning all of Cobbetts’ business has now been snapped up by firms operating from a stronger long-term position.