Ceasefire in Rosenblatt saga as sale talks underway

The public battle for control of one of the few listed legal businesses has ended for now, with both sides laying down their arms to allow for talks.

RBG Holdings, which owns the law firms Rosenblatt and Memery Crystal, announced late on Friday that it had entered an exclusivity period with largest shareholder Ian Rosenblatt to discuss a sale of the business.

Rosenblatt, who was said to have made the request for negotiations, was last week removed as a consultant by the group in a public dispute over the leadership of the company. RBG had accused Rosenblatt in a statement of breaching agreements and ‘offensive behaviour unbecoming of a solicitor’. He hit back, saying the company was insolvent and calling the statement ‘one big lie’.

Such hostilities appear to have been put to one side, as Rosenblatt attempts to buy his own branded business together with certain RBG assets.

RBG had been critical last week of Rosenblatt establishing another company, Rosenblatt Law Limited, and suggested this was done as far back as September. RBG now says it has documentary evidence that Rosenblatt purchased this company in December.

The exclusivity period lasts until 24 January, with a view to agreeing the sale before then. In the meantime, the parties have agreed to act in good faith and in an ‘expedited manner’ to advance the disposal discussions, and not to take any legal action of any nature against any of the other parties.

They will also withdraw any ongoing action that may be outstanding including the disputed winding-up petition issued by Ian Rosenblatt last Tuesday. Rosenblatt has also agreed to withdraw the pending general meeting requisition notice, as announced by the company before Christmas.

The stockmarket value of RBG - now just £1.35m -  has dropped sharply in the past week, with shares currently trading at just 1.18p. Shares rose by almost 12% today but are still worth less than half their value a week ago.

The Rosenblatt group has had a turbulent time since listing in 2018. It initially enjoyed a post-IPO boost, acquiring Memery Crystal and other businesses, with shares peaking at 160p in mid-2021. However they plummeted over the past four years amid the airing of boardroom disputes and worsening financial performance.