The listed owner of law firm Rosenblatt is headed towards administration after rescue talks collapsed, the company admitted today. 

RBG Holdings had been in discussions with its founder and biggest shareholder Ian Rosenblatt and one other party about securing a solution for the company, embroiled in a boardroom dispute. 

But in a statement to the London Stock Exchange today, the board ‘regrettably’ announced that while discussions with Rosenblatt Law Limited - a new entity co-founded by Ian Rosenblatt - were ongoing, talks with the other party had ceased.

The statement continued: ‘Having considered the company’s financial position and the lack of progress regarding the various strategic options explored, it is the board’s view that it is unlikely to be able to secure the funding that it requires in a timely manner to secure the company’s future and so is now taking action to protect value in the business for the company’s creditors and other stakeholders.’

The board added that it had requested a suspension of share trading with effect from this morning.

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Earlier this month, RBG Holdings, which also owns London firm Memery Crystal, said it continued to trade and to enjoy the support of its principal creditors, while other opportunities to strengthen the balance sheet were explored. Talks began with Rosenblatt Law Limited, despite a war of words between RBG and Rosenblatt just days previously. Rosenblatt said the company was effectively insolvent while RBG said it terminated Rosenblatt's consultancy agreement amid accusations that he had demonstrated ‘offensive behaviour unbecoming of a solicitor’.

Rosenblatt called the RBG allegations ‘one big lie’.

RBG said it was confident about its prospects and announced that, should an agreement be reached with potential buyers, the company would have sufficient cash headroom for the foreseeable future. In the event the company could not reach an agreement with its principal creditors, it would need to explore alternative financing options immediately.

If RBG were to begin insolvency proceedings, it would represent the final blow for a company that has had a tumultuous four years featuring boardroom disputes and a sliding share price. This was despite an initial post-IPO bounce in 2018, when acquisitions were made and shares peaked at 160p. By the close of trading yesterday, the share price was 0.89p. 

 

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