Manchester firm Linder Myers is on the verge of a deal to rescue the practice.
The firm gave notice of its intention to appoint administrators earlier this month and has been seeking a single buyer to take over the business.
Managing partner Bernard Seymour has confirmed the firm is in ‘advanced negotiations’ with a potential partner and has applied for an extension while due diligence is completed.
He added: ‘Linder Myers continues to trade as usual and we have been encouraged by the continued support of key clients and business partners.’
The firm, which has offices in Manchester, Lancashire, Shropshire and Chester, has expanded rapidly through mergers in the last few years. It employs 260 staff and has 51 partners, and posted turnover of £18.7m for the year ending 30 November 2013, ranking it just outside the top 100.
At the time of giving notice to appoint administrators with the Manchester District Registry Court, Seymour blamed an ‘increasingly challenging environment’ for trading difficulties in recent years. The firm has stated it has yet to appoint administrators.
Midlands firm HCB Solicitors has been reported to be the favourite to buy the firm having registered the name HCB Linder Myers Limited with Companies House earlier this month.
HCB is a full-service firm with nine offices across the West Midlands and a workforce of more than 60.
Linder Myers has embarked on an acquisition spree recently, merging with five practices since 2011, increasing turnover by £8m but pushing employment costs up by 35% to more than £6m.