RBG Holdings – the listed owner of law firm Rosenblatt – appears headed for administration following the collapse of crucial rescue negotiations marking a potentially final chapter in what has become one of the legal industry’s most compelling corporate sagas.
The company disclosed to the London Stock Exchange last week that while discussions continue with Rosenblatt Law Limited – a new venture co-founded by Ian Rosenblatt himself – parallel negotiations with another potential savior have terminated.
In a statement the board acknowledged the gravity of the situation: “Having assessed the company’s financial position and the limited progress on various strategic options, we must conclude that securing timely funding to ensure the company’s future is unlikely.” The board has subsequently moved to protect creditor and stakeholder interests, with share trading suspended.
The situation represents a stark reversal of fortune for a company that once exemplified the potential of public market investment in legal services. RBG Holdings, which also owns London firm Memery Crystal, had previously maintained it was trading normally with creditor support while exploring balance sheet strengthening options. RBG acquired the law firm in a deal in 2021.
However, recent weeks have seen an extraordinary public dispute unfold between the company and its founder, Ian Rosenblatt.
This conflict reached its apex when Rosenblatt declared the company effectively insolvent – a claim the company countered by terminating his consultancy agreement, citing “offensive behaviour unbecoming of a solicitor.” Rosenblatt’s response was unequivocal, dismissing the allegations as “one big lie.”
The potential administration represents a remarkable downturn for a company that showed such promise following its 2018 IPO. Despite initial success that saw shares reach 160p and facilitated several acquisitions, the company’s value has plummeted to just 0.89p per share as of yesterday’s close – a cautionary tale for law firms considering public listing.
The situation raises critical questions about the sustainability of alternative business structures and the challenges of transitioning from traditional partnership models to public ownership. For a firm billed as ‘Daring to be Different’ the issue sit now faces is whether it will survive at all.
