A law firm that fell into administration earlier this month owes more than £6m and unsecured creditors have been told they will not get any of their money back.
A summary of liabilities for Cheshire-based Nicholson Jones Sutton Solicitors Limited lodged at Companies House reveals that the business had tangible assets of just £159,000 when administrators were appointed. Any share in future profits from ongoing work is deemed to be uncertain.
The company had three floating charges against it. Litigation funder Fenchurch Legal is owed around £2.4m, while further charges of £318,000 and £196,000 are held by Royal Bank of Scotland and defunct litigation funder VFS Legal Limited respectively.
HM Revenue & Customs is owed £1.79m according to the summary, which was prepared by administrators from RSM and DMC Recovery, and signed by Nicholson Jones Sutton director Amanda Nicholson.
The administrators state there will be no assets available to unsecured creditors collectively owed more than £1.5m.
The firm, which specialised in housing disrepair claims, is understood still to be in operation under the ownership of NJS Law Limited, which was incorporated in 2023 and has a single director, Justine Sutton. She was also a director of Nicholson Jones Sutton Solicitors.
Fenchurch Legal made the application to appoint administrators for Nicholson Jones Sutton and has a fixed charge against NJS Law.
Nicholson Jones Sutton’s accounts for the year to September 2024 showed that the business then had assets of £5.2m.
The claims sector, particularly those firms working in housing disrepair and cavity wall, has gone through a period of turmoil in the past two years. Sandstone Legal, McDermott Smith Law, High Street Solicitors, Quanta Law, Woodwards Law and Legal UK Services Ltd have all fallen into administration. Many were located in the north-west of England.
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