Bosses of beleaguered firm Ince Group have been urged to break their silence two weeks after announcing they would put the business into administration.
The company stated on 12 April that its directors had resolved to file documents with the court to appoint insolvency firm Quantuma as administrator, with the expectation that the business would be sold to a third party as soon as possible.
Since then, there have been no announcements about the progress of the administration or about any sale talks. Quantuma has declined to respond to requests for information and it is reported today that Ince has extended its search for an administrator by submitting a second notice of intention with the court.
Meanwhile, the position of shareholders and staff is unclear – including the estimated 24 trainee solicitors who are part-way through their training contract and would need to find an alternative legal services provider to ensure they can become a qualified solicitor.
A spokesperson for the Junior Lawyers Division said the lack of updates is worrying for those whose legal careers may be in limbo waiting for a buyer to emerge.
He said: ‘Following the recent news, we are concerned about all of the staff that have been affected by the recent news of Ince Group entering into administration. It is particularly worrying that there has been no further comment from them as far as we are aware as to what will happen with their junior members and whether they will be assisted in finding alternate employment if required.’
The JLD has also contacted the SRA to ask what had been done to manage the financial stability of the firm prior to Ince Group seeking to appoint administrators. Its spokesperson added: ‘With the firm having an obligation to manage its financial stability, questions have to be asked as to what the SRA are doing if these reporting obligations have not been met.’
The SRA has yet to respond to a Gazette request for comment.
Many Ince staff are believed to have bought or been offered shares in the business prior to its financial troubles, and they will be anxiously awaiting news to know if their stake has any remaining value.
As recently as last October, Ince Group gave all employees the opportunity to subscribe for new ordinary shares at an issue price of 5p per share. Employees bought around £1.2m of shares, which was used to reduce the group’s liabilities and provide extra working capital.
The only announcement since 12 April from Ince was confirmation that its nominated adviser and broker, Allenby Capital Limited, had resigned with immediate effect. Shares would be automatically suspended if no replacement adviser was found within a month.
Speculation is rife that other top 50 firms have expressed an interest in buying some or all of the Ince business.
It has also emerged that four businesses, each with a variation on the Ince name, were incorporated with Companies House in the two days prior to the 12 April announcement. Adrian Biles, the former Ince chief executive who resigned last year, is listed as being a director of each of the four companies but resigned this position a day or two later.
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