Further details have emerged of defunct firm Cobbetts’ financial troubles as administrators begin talks with creditors.

KPMG was last week appointed as administrator following completion of the firm’s acquisition by national practice DWF.

A KPMG spokesman said it was too early to establish how many creditors there are and what return they would be offered.

Mark Firmin, UK regions head of structuring at KPMG, said a deal had been brokered which would save the jobs of all 419 core Cobbetts staff. They are due to move into DWF premises in the coming weeks.

A further 27 people in Cobbetts’ finance litigation team will join Leeds-based firm Walker Morris.

But the future of the firm’s debt recovery division Incasso, a product of Cobbetts’ 2002 merger with Leeds firm Read Hind Stewart, was unclear. DWF will not acquire Incasso.

The most recent accounts filed with Companies House show Incasso, which has around 50 employees, made operating losses of £828,000 in 2010/11 after turnover tumbled by 27%. Losses for the previous year were £138,000.

DWF said it would honour all Cobbetts training contracts, which include those already in place, as well as contracts with trainees yet to start.

Meanwhile, the House of Commons Business, Innovation and Skills committee called for reform of so-called ‘pre-pack’ deals of the kind that saved Cobbetts.