Halliwells Explained

Halliwells LLP
Headquarters:Manchester, United Kingdom
Num Offices:Four
Num Lawyers:372 (2010)[1]
Num Employees:848 (2010)
Practice Areas:General practice
Revenue:£67 million (2010)
Date Founded:2004
Company Type:Limited liability partnership
Dissolved:20 July 2010

Halliwells LLP was an English law firm practising from offices in Manchester, London, Liverpool and Sheffield, with 116 partners and around 850 employees.[2]  The LLP was established in 2004 to take over the practice of Halliwell Landau.[3]  Key individuals involved in its management were senior partner Alec Craig and managing partner (then executive chairman) Ian Austin,[4] London office head Clive Garston,[5] Liverpool office head and then managing partner Jonathan Brown,[6] and Sheffield office head Suzanne Liversidge.[7]

Insolvency

On 20 July 2010, the High Court made an order putting Halliwells into administration. Dermot Power and Shay Bannon of BDO LLP were appointed administrators.  Halliwells' practice was sold as a pre-packaged insolvency to four other firms: Hill Dickinson, Barlow Lyde & Gilbert, Gateley, and Kennedys.[8]

At the time, this was the largest English law firm to go into administration.[9] [10]

The administrators initially blamed market conditions and high rents for the firm's failure.[11]  An additional factor behind the firm's failure was a property transaction connected to Halliwells' decision to become an anchor tenant in the Spinningfields business development in Manchester.[12]  The firm received a reverse premium of £20 million from the landlord, which was shared between the firm's 32 equity partners, who each took between £250,000 and £1 million. This was kept secret from the junior partners. The administrators have sued the 32 recipients[13] and have alleged that Halliwells’ equity partners altered the minutes of a meeting about the reverse premium before passing them on to the rest of the firm.[14]  There has been an attempt to resolve the dispute by mediation.[15] [16]  Ian Austin[17] and Suzanne Liversidge[18] have each spoken publicly about Halliwells' failure and denied any personal responsibility.

In March 2012, 36 of the former junior partners who were not told about the reverse premium threatened to sue the 32 equity partners who took the £20 million.[19]

Notes and References

  1. Web site: UK 200 Results 2010: Halliwells. 8 October 2012. The Lawyer. dead. https://web.archive.org/web/20121006090012/http://www.thelawyer.com/directory/h/Halliwells/. 6 October 2012.
  2. Web site: Re Halliwells Llp & Ors (Rev 1) [2010] EWHC 2036 (Ch) (30 July 2010) |publisher=Bailii.org |access-date=2012-08-08].
  3. Web site: Halliwells latest to take plunge as LLP conversions gain momentum | News . The Lawyer . 2004-06-21 . 2012-08-08.
  4. Web site: Halliwells' staff: where are they now? | News | The Lawyer. thelawyer.com. 2014-02-11.
  5. Web site: Halliwells corporate trio quit London office to join DAC . Legalweek . 2012-08-08.
  6. Web site: DANGEROUS AMBITION: Halliwells At The Brink . Chambers Magazine . 2012-08-08 . dead . https://web.archive.org/web/20110817001410/http://www.chambersmagazine.co.uk/Article/.DANGEROUS-AMBITION-Halliwells-At-The-Brink . 2011-08-17 .
  7. Web site: 'Bombshell' defection at city law firm - News . The Star . 2009-12-23 . 2012-08-08.
  8. Web site: Halliwells appoints BDO as administrators . Insolvencynews.com . 2010-07-21 . 2012-08-08.
  9. News: Aldridge. Alex. Corporate law firm undone by boom-era excess. The Guardian (online). 22 October 2010. 6 June 2012.
  10. Web site: Halliwells becomes biggest casualty of the recession. Lawgazette.co.uk. dead. https://web.archive.org/web/20130224232732/http://www.lawgazette.co.uk/news/halliwells-becomes-biggest-casualty-recession. 2013-02-24.
  11. Web site: BDO administrators seal pre-pack deal at Halliwells - 22 Jul 2010 . Accountancy Age . 2012-08-08.
  12. Web site: Bounds . Andrew . Northern law firms face survival battle . FT.com . 2011-02-06 . 2012-08-08.
  13. Web site: Former Halliwells partners to repay £20.4m Spinningfields windfall | News | The Lawyer. Thelawyer.com. 2014-02-11.
  14. Web site: Swift . James . Explosive allegations surface in Halliwells court case | News . The Lawyer . 2012-08-08.
  15. Web site: Dowell . Katy . Addleshaw Goddard plays host to Halliwells mediation | News . The Lawyer . 2012-04-23 . 2012-08-08.
  16. News: Former Halliwells partners in £21m mediation talks. Manchester Evening News (Business). 19 April 2012. 6 June 2012.
  17. Web site: Halliwells' ex-managing partner: 'I gave my life to that practice' | News. Thelawyer.com. 2014-02-11.
  18. Web site: Chamber leader faces legal case - Local . The Star . 2012-03-15 . 2012-08-08.
  19. News: Chamber boss and lawyers in fight over £21m deal. The Yorkshire Post. 14 March 2012. 6 June 2012.

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