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A pioneer of the listed law firm model in the UK has suspended trading in its shares and said it was unlikely to find the funding required to secure its future, following long-running disputes among its management.
RBG Holdings, which owns the law firms Rosenblatt and Memery Crystal, said on Tuesday that it had suspended trading on London’s Aim market after a “lack of progress regarding the various strategic options explored” to find the required funding.
RBG was among the first law firm groups in the UK to go public after the Legal Services Act opened the sector in 2011 and allowed law firms — traditionally structured as partnerships — to accept outside investment or float on the stock market. Midlands firm Gateley became the first to list in 2015, with RBG following suit in 2018.
The announcement signals an end to a turbulent period at the law firm group, whose shares have plummeted amid sinking revenues and management bust-ups. Rosenblatt founder Ian Rosenblatt attempted to oust RBG’s chief executive officer and two non-executive directors shortly before Christmas.
The group said earlier this month that it had terminated Rosenblatt’s consultancy agreement with the firm due to alleged breaches and “offensive behaviour unbecoming of a solicitor and consultant to RBG”. Rosenblatt didn’t immediately respond to a request for comment.
When the Legal Services Act came into force more than a decade ago it was dubbed the legal sector’s “Big Bang” and expected to overhaul the traditional law firm model that had been in place for centuries. However, there has been limited take-up, and some firms have subsequently delisted.
DWF, which was also among the first firms to go public, was taken private at the end of 2023 by private equity firm Inflexion. While there has been a lack of appetite for listings, private equity groups have been taking advantage of the fact law firms can now take external investments with a string of bets on the legal industry in recent years.
The developments come as KPMG is now attempting to prise open the US legal market to alternative business models, using an Arizona programme that allows non-lawyers to own law practices.
