DJ Freeman cuts its losses

DEMISE: media and property lawyers leave for Olswang

The shock demise last week of City firm DJ Freeman - which will see the birth of a new insurance, litigation and corporate practice and the departure of media and property lawyers to Olswang - was caused by an imbalance in profitability, sources suggested this week.

DJ Freeman chief executive Laurence Harris told the Gazette that the 20 corporate, insurance and litigation partners remaining in the firm's Fetter Lane offices - but rebranding as Kendall Freeman - represent 'the most profitable parts' of the firm.

Another source, who has inside knowledge of DJ Freeman, said: 'It is unlikely that they [the property and media departments] jumped ship so much as being asked to find a new home...

the insurance and corporate departments have been in the ascendant [economically] at the firm.'

Partners destined for Olswang include DJ Freeman's senior partner Toby Greenbury, who will join the media firm's management board, and defamation specialist Susan Aslan.

Olswang chief executive Jonathan Goldstein acknowledged that the past couple of years have been difficult in the media sector, but he said: 'You have to have confidence in the sectors you believe in...

we are maintaining a healthy business.'

Mr Harris said that completion of the agreement between the partners at DJ Freeman to part ways should be finalised by the end of April, when 13 partners and 38 staff in the firm's property and media departments should move to Olswang.

Mr Harris said: 'Kendall Freeman will look for new legal teams in banking, corporate finance and restructuring.' He said that Kendall Freeman would only have equity partners.

A consultation on the 'substantial re-organisation' of support staff and services at DJ Freeman is now under way.

Jeremy Fleming