The founder and largest shareholder of law firm owner RBG Holdings has demanded the replacement of three senior executives in an attempt to revive the firm's fortunes - and share price. Broadcaster Sky News has reported that Ian Rosenblatt has hired restructuring experts and set the board a a deadline to respond by the end of today.
City dispute resolution firm Rosenblatt became the fourth law firm to list on the London Stock Exchange in its own right. However shares in RBG, which also owns international firm Memery Crystal, now stand at a fraction of their price at the 2018 valuation. RBG has also suffered two years of boardroom turmoil, including the departure of high-profile chief executive Nicola Foulston.
In the year to In the year to 31 December 2023 RBG Holdings recorded a pre-tax loss of £700,000, compared with a profit of £7.6m in 2022.
According to media reports today, Rosenblatt and US-based restructuring business Teneo have demanded the immediate resignation of chief executive Jon Divers and two non-executive directors. The prospective replacements are understood to be Jonathan Fox, a former managing partner of accountants Saffery Champness, who would be installed as chairman; Adil Taha, a former commercial director of new model firm Mezzle Law and head of global operations at Gunnercooke, who would take over as RBG's chief executive; and Jonathan Watmough, former Reynolds Porter Chamberlain managing partner, who would join as a non-executive director.
RBG declined to comment.
Shares in RBG Holdings rose 11% to 1.8p on the news, down from 95p at the initital public offering.
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