Backs against the wall

When Cobbetts’ managing partner Michael Shaw walks into his interview with Legal Business half an hour late, he is looking remarkably unflustered. This is surprising for a man whose firm saw an 18% drop in revenue and an estimated 76% fall in PEP this year, according to LB100 figures.

It is even more unexpected when taking into account the press savaging Cobbetts has endured over the past few months. Historically transparent, the firm this year refused to divulge its financials, placing huge question marks over the state of its business.

Once an ambitious northern player, Cobbetts is a firm that completed five mergers in seven years, extending its presence into four major legal hubs, including a recent debut in the capital. It once ranked among the top players in its peer group in both revenue and PEP, and was regarded as a competitive presence in its respective markets.

But a combination of disappointing figures, partnership restructurings and headcount cuts has spelled bad news for the firm. Disastrous market conditions clearly had a part to play in Cobbetts’ swift fall from grace, but just how much could have been prevented by cannier strategy decisions? With a reputation under serious and increasing attack, and a revenue and profit decline that would send any partnership reeling, Cobbetts is feeling the heat.

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