RSM Tenon has confirmed its disposal of its IVA business to Grant Thornton in a £7m deal.

The firm indicated last week that it was in talks with GT to sell it's stand-alone Manchester operation, which employs 60 staff and generates revenues of about £5m.

RSM Tenon said in a statement that the sale did not include the firm's debt management business or any other part of RSM Tenon Recovery.

In August, the firm downgraded its market listing from 'premium' to 'standard'. This was followed by an announcement from the Accountancy and Actuarial Discipline Board (AADB) that it would be investigating PwC, Tenon's auditors, and other members of the ICAEW in relation to the firm's accounts.