The SRA has intervened into a south Wales firm that had entered liquidation.

The regulator said its intervention was necessary to protect the interests of clients and former clients of John W Davies Legal Ltd, which had offices in Newport and Chepstow. The intervention also applies to the firm’s sole remaining director, Danielle Evans.

According to Companies House records, the firm was placed into voluntary liquidation in March and a resolution to wind up the business was made soon after.

A statement of affairs published by liquidator Ruth Ellen, of insolvency practice Maxwell Davies, stated that John W Davies Ltd had work in progress worth around £389,000 at the time of going out of business, but this is expected to realise nothing.

Based on the assets of the business, there will be just £17,000 available for preferential creditors – not enough even to cover the wage arrears, holiday pay and pension payments owed to staff, which come to around £28,000.

The total owed to unsecured creditors comes to £1.22m, of which around £500,000 is due to trade creditors, £280,000 is outstanding professional indemnity insurance and £204,000 is unsecured claims from employees.

On its website, John W Davies Solicitors said that it was no longer authorised and regulated to carry out reserved legal activities from 31 January this year.

The firm said: ‘The decision to close the practice has come because of several factors, the increase in running costs, particularly the professional indemnity insurance premium which has increased significantly and the ripple effect of Covid-19.

‘We would like to apologise to our clients, old and new, for the inconvenience this may cause but please rest assured we are still managing certain administrative tasks after 31 January to meet our professional obligations to our clients and stakeholders.’

John W Davies Solicitors was founded in 1927 and claimed to be the oldest, established law firm in south Wales of its original name. It specialised in residential and commercial conveyancing, family law, wills, probate and trusts.


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