Restructuring and insolvency specialist Begbies Traynor Group has agreed to acquire a 140-year old insolvency practice, The P&A Partnership Ltd, which has gone into administration
Begbies Traynor says it has bought ‘the trade and certain assets’ of P&A as part of a pre-pack deal, which is believed to be worth £860,000.
Under the transaction, 36 P&A staff will join Begbies Traynor, including three former directors, to combine with the firm’s existing team of 47 insolvency professionals in Yorkshire.
Ric Traynor, executive chairman of Begbies Traynor Group, said: ‘The acquisition of P&A's team and cases further enhances our position as the UK's leading independent insolvency practice. In particular, its strong regional presence and team will position Begbies Traynor as the leading appointment taker in Yorkshire and will bring additional strength in asset based lender and creditor services.
‘We are very pleased to welcome the team to the group. The group remains well placed to continue to take advantage of opportunities to develop and enhance the business both organically and through selective acquisitions.’
Based in Sheffield, P&A was founded in 1875 and was a significant regional provider of business recovery and insolvency services together with providing commercial finance broking, asset recovery, creditor and asset based lender support services.
However, in recent years the company has experienced some difficulties. At the end of last year Grant Thornton took over from P&A on the administration and liquidation of a Nottingham company, and went on to launch a £1.2m legal case involving two of its staff over alleged 'misfeasance or breach of fiduciary duty', with claims that fees 'were not justified’.
P&A has strongly denied the allegations, and this case is understood not to form part of the Begbies Traynor acquisition. The Department for Business, Innovation and Skills also has an ongoing investigation into P&A, but neither side has made any comment on the scope or progress of this.
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