Memery Crystal’s parent company RBG Holdings is set to proceed with an ‘orderly winding down’, it announced today (17 February), after failing to appoint administrators within ten days of filing notice of intention to do so.
In a statement to the London Stock Exchange this morning, the company stated: ‘Further to the announcement on 31 January 2025, the Board of RBG Holdings plc regrettably has not been able to appoint an administrator to the Company or any of its subsidiaries.’
‘The Directors have therefore resolved to proceed with an orderly winding down of the Company and its subsidiaries in the coming days. Following positive engagement with the SRA, in the intervening period, the Directors will be proceeding with the expedited transfer of all remaining client files to other firms to comply with all SRA duties and responsibilities, and also facilitate a continuing and ongoing service for all clients.’
RBG announced its intention to appoint administrators on 31 January, three days after trading in shares was suspended. This opened a period of 10 business days during which creditors could not bring legal action against RBG. RBG failed to appoint administrators within the period, and has now opted to wind down rather than apply for an extension.
On why this course of action may have been taken, Rick Brown, co-head of fraud and insolvency at HFW, commented: ‘The main purposes of administration is to try to and rescue the business or to achieve a better result for creditors than would be the case in the event of liquidation. So often, when a notice to appoint administrators has been filed and an administration order is not subsequently made, it is the case that the company’s directors have considered the finances in more detail, almost certainly with the input of accountants, but cannot formally confirm that those purposes can be met.’
The collapse came after a public war of words between RBG and Ian Rosenblatt, name partner and founder of disputes firm Rosenblatt, which had operated under the RBG umbrella until its recent breakaway and relaunch as an independent firm.
Many lawyers from Memery Crystal – which was acquired by RBG in 2021 – have found new homes in recent weeks, with recent departures including insolvency and restructuring head Jeff Roberts, who has secured a move to Druces, corporate partner Christopher Allen, who has followed the breakaway group to Rosenblatt, and employment head Bob Cordran, who has moved to Blake Morgan, according to his LinkedIn profile.
Other firms to have picked up former Memery Crystal lawyers include Fladgate, which has taken on a total of 25 lawyers and staff including nine partners, as well as Lawrence Stephens, Haynes Boone and Keystone Law.
According to Memery Crystal’s website, around 11 partners remain unaccounted for, including the firm’s chair Lesley Gregory.
An SRA spokesperson said: ‘We have been liaising with the firm in recent weeks. We are monitoring the situation – our focus is on making sure any risks to clients are appropriately managed.’
