The South West accountancy business has now been sold as part of a pre-packaged sale which preserves the jobs of the firm’s employees and ensures customers do not suffer any disruption although one office location in Dartmouth has closed as a result of the disposal. The new operation will trade as MG Accountants’ Ltd.

The sale was forced as a result of ongoing litigation which forced the accounting firm into administration. The case, Benny v MG Associates Ltd and anr (Bristol Mercantile Court, Mr Recorder David Blunt QC, Nov 2013) involved a claim by the vendor of accountancy practice seeking payment of purchase price and counterclaim by purchaser for damages for misrepresentation.

According to administrator, Michelle Weir of Lameys Business Recovery, ‘over recent years MG Associates Ltd has been involved in extensive litigation. The recent judgment left MG Associates Limited in an insolvent position with a liability which it could not pay’.

A spokesperson for Lameys added that 'there are a couple of cases outstanding which will be reviewed as part of the administration process'. Since the firm has been sold under pre-pack arrangements, the liability now falls within the administration.

The business was marketed before the administration and the best offer was received from a company connected to the director, which was run by the wife of the firm's sole director, Michael Ghersie. As a result, his wife, who ran a separate company based in Paignton, has acquired the accounting firm. 

The business has therefore been sold to MG Accountants Ltd which is a company owned and controlled by the director’s wife.  As a result, the management and staff will remain unchanged and business customers should experience almost no disruption to the service they receive.  Contact numbers and personnel have not changed.

The Dartmouth office workload will now be administered from the Kingsbridge office. The Torquay office will remain unchanged.

Michelle Weir, partner at Lameys Business Recovery, said: ‘1We are pleased to have been able to secure a sale of the business which will facilitate a return to the company’s unsecured creditors and saved jobs.  The only real alternative was to liquidate the company and that would have been far worse for the creditors, staff and customers.

‘It is clear the sale to a company which is connected to the director has provided the best possible outcome.  The business was extensively marketed before the administration and, whilst there was significant interest, the best offer was received from MG Accountants Ltd.’

The latest annual return filed on 18 November 2015 are available at Companies House