Despite engaging 28 parties, Wright Hassall’s merger talks failed, leading to insolvency and a sale to HCR law
Wright Hassall, a well-known Midlands law firm with a 179-year history, has been forced into insolvency after year-long attempts to merge or secure a buyer failed. The firm’s equity partners sought strategic options, including a merger, sale to another law firm, or a sale to private equity, but despite engaging with 28 potential buyers and conducting extensive due diligence, they were unable to secure a successful deal.
The firm’s financial troubles were further exacerbated by the departure of key partners, which negatively impacted revenue and profitability. In the 2024/25 financial year, Wright Hassall’s turnover dropped by 3%, falling to £17.1 million, while profits marginally declined to £1.83 million. The exodus of partners led to a further deterioration in the firm’s business prospects.
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Despite efforts to keep the firm afloat, the remaining equity partners could not sustain the LLP based on the projected small profit margins and ultimately withdrew their support. In October 2025, Wright Hassall entered administration and was introduced to Leonard Curtis, the appointed administrator, who helped facilitate the sale of the firm’s assets and staff to national firm HCR Legal through a pre-pack arrangement.
HCR Legal paid £240,000 for Wright Hassall’s assets, including staff, and negotiated a commission structure based on the work in progress and book debts, ranging from 10% to 65%, depending on the age of the debts. A total of 113 out of 129 staff members were transferred to HCR, while the remaining employees left voluntarily and were paid their notice period.
Wright Hassall owed £2.6 million to Lloyds in fixed and floating charges, which will be partially settled through the proceeds from the sale. The firm also owed £675,000 to HM Revenue & Customs, which is expected to be fully repaid. However, the total amount owed to unsecured creditors remains uncertain.
The pre-administration costs of the firm amounted to £173,000, which included £77,400 for legal advice from Charles Russell Speechlys regarding the purchase agreement and other related formalities.
The failure of the merger talks and the subsequent insolvency marks the end of an era for Wright Hassall, a firm that had been a staple in the legal landscape for nearly two centuries.