Another claims firm based in the north west is on the brink of insolvency after action by a trade creditor. Court documents show that Sandstone Legal Limited, based in Manchester, filed an application to appoint administrators last week.

This followed a petition to wind up the company presented on Christmas Eve by medical reporting agency Medical-Legal Appointments Limited. It is understood that a hearing for the winding up order was due to take place yesterday but has been adjourned until tomorrow.

In a statement, managing director Andrew Settle said: ‘All options are currently being considered with the business and staff which involves third parties who have bid for the work in progress and also the proposed administrators. At this stage there are a number of variables and proposed outcomes but I am working very closely with the SRA to find a solution which satisfies all clients as is my professional obligation to do so.’

Little up-to-date financial information is available on the firm, with the most recently published accounts covering the year to October 2022. Sandstone subsequently changed its reporting period but its latest accounts are overdue.

In 2022 the firm had just two people but it is understood that operations have grown since then as the housing disrepair and Plevin financial mis-selling claims departments grew. It also runs debt recovery services, dispute resolution, car finance claims and stamp duty land tax claims. The firm appointed a new head of wills, trusts and probate just over a year ago. It operated from sites in Manchester, Liverpool, Lancaster and Stockton-on-Tees.

Sandstone has been at the forefront of housing disrepair claims against local authorities, advocating for housing association tenants. It launched the brand Housing Claims Experts, pledging to operate claims through a panel of solicitors on a no win, no fee basis.

On its website, Sandstone describes itself as a ‘forward-thinking law firm’ with plans to drive efficiency about how cases are handled. The site adds: ‘There is no end to what we can achieve together and how we can improve.’

The firm was advertising for a new head of housing disrepair eight months ago to lead a team of eight.

Settle is the only remaining director after three others resigned last year. He was also appointed as director of a separate firm, Precision Solicitors Limited, in November.

Sandstone is the latest claims firm in the north west to run into financial trouble in the last two years. High Street Solicitors, McDermott Smith, Woodwards Law, Legal UK Services Ltd and Quanta Law have all folded. Two major players in the claims market, Pure Legal and SSB Law, have also closed facing massive debts.