Connect Costs and Pure Costs Budgets are two of eight Pure Legal Group companies that went bankrupt on Tuesday, resulting in more than 200 layoffs. However, the group`s main cost business, Pure Legal Costs Consultants, is not on the list, although its website is not available and its LinkedIn page appears to have been removed. In a statement, Kroll said: “The companies are part of the Pure Business Group, which provides a range of end-to-end legal services in the civil litigation industry and handles over 20,000 pending claims. This website uses Akismet to reduce spam. Find out how your comment data is handled. “As a result, the company was unable to make all payments due to creditors and began operating on a critical payment basis at maturity while evaluating its options. YLC initially paid £58,600 and will pay an additional £76,688 on a deferred basis, for a total of £135,288; YLC has agreed to assist the directors, Alvarez & Marsal, in the collection of debts and the deferred consideration will initially be paid by deducting collection costs due to YLC. PLCC was taken over by Time Invoice Finance, its main working capital provider. It provided the financing via a confidential invoice discount option against a personal guarantee from Pure`s CEO, Phil Hodgkinson.
Liverpool-based Pure Legal Costs Consultants (PLCC) has been sold to a new company called Your Legal Costs (YLC). The 49 employees have changed. The Costs Lawyer Standards Board register lists eight cost lawyers who work at Pure Legal Costs Consultants. My company is the owner of Unit 8 Tiger Court, the premises of Pure Legal Costs Consultants Ltd in Knowsley. The premises are closed and all attempts to contact PLCCL have so far failed. A basic payment term agreement has been agreed with HMRC and the extended group. “The other companies in the group as a whole are not affected by the appointment of receivers.” Pure focused on high-volume consumer disputes: careless wall insulation, mortgage mis-selling, undisclosed commissions, mortgage miscalculations, construction degradation, and data breaches. She pulled out of the injury market earlier this year by selling Pryers Solicitors, which she had bought six years earlier. Alvarez & Marsal said the pre-packaged sale “provides the best value for creditors as a whole while protecting the company`s key assets.” This prompted Time to order Alvarez & Marsal to explore options, which it quickly determined to be “limited.” John Noon and Paul Flint were officially appointed directors on January 24 and closed the sale the same day. Pure was envisioned by Phil Hodgkinson, who founded Compass Costs before selling it to Quindell in 2013 for £14 million.
Two years later, he founded Pure. One of the Pure Business Group companies that avoided management last year finally went bankrupt last month, but was bought at a pre-packaging sale. Time had fixed and variable fees since 2017 and at the time of Alvarez & Marsal`s appointment, £262,000 was due. NatWest owed nearly £40,000 in respect of the overdraft it had provided to PLCC, which was also secured. Alvarez & Marsal said a “number” of PLCC directors would be YLC directors, but at the moment the only one listed in Companies House is David Kirby, who was chief financial officer of Pure Business Group. Unsecured creditors who owe £275,000 are unlikely to receive a dividend at this time. HMRC is the largest, owing an additional £120,000. Huddersfield Town, owned by Mr Hodgkinson, owes £24,000, while fellow footballer Liverpool owes nearly £15,000. Kenworthy`s Chambers in Manchester owes nearly £20,000.
The directors` report said PLCC was “already facing some liquidity issues and increasing pressure from creditors” ahead of Pure Group`s bankruptcy last November, including around £1.8m in arrears accrued to HM Revenue & Customs during the pandemic. “The companies, which together employed 256 people and operated from sites in Liverpool and Prescot [in Merseyside], ceased operations with immediate effect, resulting in 203 redundancies. Administrators work with remaining employees to manage operations and support laid-off employees. They said the time would be paid back in full, while NatWest would likely receive nothing at this point. The arrangements for the Pure Group at large “suggest that there should be no reason” for Close and Novitas to invoke the security they hold in PLCC. PLCC`s other secured lenders were Close Invoice Finance and Novitas Loans; Neither directly financed PLCC, but rather supported other group companies, but their security was ensured by mutual guarantees. “Joint administrators take the necessary steps to ensure that all client files and funds are safe, and applicants are contacted to explain next steps. However, these challenges were exacerbated by the Group`s insolvency, “mainly due to the loss of all intra-group sales and large intra-group balances that could not be repaid on time. It is estimated that about 135 employees still work in the larger group, which includes Pure Litigation and Advocacy, an alternative corporate structure (such as Pure Legal). Kroll Advisory announced yesterday that Rob Armstrong, Michael Lennon and James Saunders were appointed as joint directors of Pure Business Group, Astute Business Management Consultants, Pure Technology Systems, Pure Reporting Services, Pure Claims, Pure Legal, Pure Claims Support Services, Connect Costs and Pure Costs Budgets on Tuesday. Not all of these companies were active, it is known. To Brian Cook above Comment: Pure legal fee consultants were used in administration.
Alvarez and Marshal in Brighton were appointed directors (John Noon or Paul Flint) 02077155200) YLC was the only potential buyer who offered to buy a portion of PLCC`s business and assets; Others were only interested in buying suitcases. As for preferential creditors, the £14,000 pension arrears should be paid in full, while HMRC is expected to receive a dividend on the £1.7 million due, “but the amount has not yet been determined”.