A network of solicitor firms employing more than 650 people says it will survive a winding up petition from HM Revenue & Customs. The leader of Metamorph Law said the company is 'working to resolve matters' and will continue to build the brand – albeit with several as yet-unspecified changes.
It has been reported in the past week that the group, including the multi-office north west firm Linder Myers Solicitors, is subject to the winding up petition. This followed a report last month that Metamorph had failed to pay its staff on time for two months in a row.
Tony Stockdale, executive chair of the group, declined to be interviewed by the Gazette but issued a statement addressing the winding up petition. ‘We are working to resolve matters with HMRC and we are very confident of a successful outcome,’ he said. ‘In addition we have a supportive group of shareholders and management team who remain committed to our strategy.
‘That said, the action of HMRC was a shock to everyone. As a result we will be making a number of changes in the business to avoid a repetition.’
A spokesperson for HMRC declined to comment on individual cases, but added: ‘We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money.’
Metamorph has taken a circuitous and sometimes difficult route to its current incarnation, which is a network of 15 offices largely formed through taking on other firms or parts of other firms’ business.
It was set up as an alternative business structure through a joint venture with Assure Law with an initial £4m war chest made available to buy up to 60 firms.
Since then it has regularly acquired legal businesses, sometimes through pre-pack administration deals, and allowed them to stay in practice under their own brands. Its collection includes Knight Polson Solicitors, Parott & Coales, SLC Solicitors and Verisona Law. The company also owns QualitySolicitors. Acquisition activity continued this year until July, when Metamorph bought the Bedfordshire firm Knowles Benning.
MLL Limited, the parent company, is more than three months’ overdue in filing its accounts for the 2020/21 year. Its most recent set of published accounts, covering the 18 months to 30 June 2020, show that the business made an overall loss of £2.1m in the period, despite turnover more than tripling to £16.4m. The company had assets worth £11.2m but owed creditors almost £11.6m within one year. Covid-19 was said to have had a ‘mixed impact’ on the group, with areas such as trusts & probate and family increasing in demand but the courts slowdown reducing its ability to complete cases.
The directors have received a letter of support from Metamorph Group Limited, the ultimate parent company, confirming its intention to continue to provide support for at least another year.
* Please note: Metamorph and its holding company have no relation to Birmingham firm Merit Legal Limited, which has traded since 2015 as Merit Legal Solicitors and MLL.
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