Regional firm Wright Hassall scooped up in pre-pack administration

Regional law firm Wright Hassall has been taken over by HCR Law following a pre-packaged administration process.

Court filings earlier today (14 November) showed the Leamington Spa firm had filed a notice to appoint administrators. On the same day, the firm announced it had joined top 50 outfit HCR in a pre-pack deal.

Wright Hassall, which dates back to 1846 and is active across commercial and private client work, had been grappling with declining profitability and flat revenue for several years. Turnover slipped from £18.4 million in 2021 to £17.6 million in the year to March 2024, with operating profit sliding steadily over the same period.

What they said

HCR said the deal brings "complementary expertise" and will give Wright Hassall clients access to a broader range of services. The Leamington Spa office will operate as HCR Wright Hassall.

"For now, it’s business as usual for clients," said Sam Payne, joint head of HCR’s Leamington Spa office. "This is about building on shared strengths and creating new opportunities for our clients and staff."

The combined firm has 12 offices, around 1,060 staff and revenue of around £112 million. London-headquartered HCR used to be known as Harrison Clark Rickerbys.

A test for the regional market

The move will raise questions about the resilience of some regional firms in the UK's lower mid-market - a segment squeezed by rising costs and limited revenue growth.

Private equity interest in this part of the market has increased over the past 18 months, but investors have largely targeted stronger "platform" firms capable of anchoring a buy-and-build strategy - Ufenau’s recent move for PI specialist Express Solicitors being a case in point.

Those without a good growth story may be left without the capital or strategic direction needed to survive.