A multi-office firm that had been in profit just three years ago collapsed under the weight of a combination of financial pressures including the rise in National Insurance contributions, administrators have revealed. BLB Solicitors, which operated across the west of England, had reported £107,000 in profit after tax in 2023 on a turnover of more than £4.5m.
But according to a notice of administrator’s proposals published this week, the company experienced increasing financial problems arising from different market, operational and trading factors.
One significant contributor was the performance of the clinical negligence practice which had previously generated a steady stream of fee income from a consistent cycle of opening and settling cases.
But the Covid-19 pandemic disrupted this pattern, leaving the firm incurring substantial ongoing costs without fees coming in. The business was strong enough to support one year of reduced income, but did not have the scale or financial resources to handle several years of below-budget performance.
The position deteriorated further when the head of clinical negligence materially reduced anticipated future income which would adversely impact the company’s budgeting and cash flow projections.
The firm had made substantial investment in recruitment and training in a bid to return to profit, with a number of new fee earners brought on board.
But at the same time, the company was hit by a slowdown in conveyancing transactions which went on longer than expected due to uncertainty surrounding the national economy.
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The firm had to pay increased National Insurance contributions and incurred recruitment costs following the departure of key members of staff. The implementation of a new case management system also resulted in a temporary reduction in productivity as staff tried to adapt.
Joint administrators Gareth Buckley and Steve Elliott, from The Insolvency Company, said: ‘The cumulative effect of these factors placed increasing pressure on the company’s cash flow and financial position.
‘Following a review of the company’s forecasts and available funding, the directors concluded that the company was unable to continue trading without the protection afford by an insolvency process and sought advice from insolvency practitioners in March 2026.’
An offer to sell the business and its assets was agreed, but the purchaser withdrew their offer to leave no option but to cease trading. Closure followed in May, with around 90 staff made redundant, and the Solicitors Regulation Authority intervened two days later to take possession of client files.
An assessment has yet to be made of the value of the firm’s work in progress. As of March 2025, BLB had net assets of almost £440,000. Unsecured creditors are owed around £2.5m but are unlikely to recover anything. Secured and preferential creditors are expected to be paid back in full.
Administrators have agreed to pre-appointment fees of £15,000 and have sought £32,000 plus VAT for post-administration work.
The business was established in 1979 originally as a partnership named Bishop Longbotham and Bagnall. It traded from offices in Trowbridge, Bath, Swindon and Bradford on Avon.
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