Just months after the second pre-pack rescue of Ince & Co, the firm’s latest owner, Axiom Ince, is set to be wound down, with hundreds of business services staff facing unemployment as the firm’s lawyers find new homes.
News of the wind-down comes after a tumultuous period for Axiom following its acquisitions of former shipping leader Ince and insurance firm Plexus out of administration.
Just weeks after the Plexus acquisition in July, the Solicitors Regulation Authority (SRA) intervened into the practices of three Axiom solicitors – including founder and managing partner Pragnesh Modhwadia – on the grounds of suspected dishonesty.
After the firm filed a claim for alleged breach of fiduciary duty, a High Court judge imposed a freezing order of £64m against Modhwadia, who admitted that client money had been used to buy Ince and Plexus – as well as a number of properties – and that the money was not accounted for. Ince had been sold to Axiom for just £2.2m, with an initial payment of £1m and the remaining £1.2m in instalments.
The SRA has confirmed that the firm ‘will likely be unable to continue in its current format’ and it is thought to be likely that the regulator will intervene once client files have been transferred over to new firms.
In a statement, an SRA spokesperson said: ‘Our priority is making sure the public and clients of the remaining firm are protected. We are in regular contact with the directors of Axiom to make sure it can meet its regulatory duties, including working in the best interests of its clients. Although Axiom continues to trade, they have said it ‘will likely be unable to continue in its current format’. We are closely monitoring the position.’
In recent months there has been a steady stream of departures from the firm. It is understood that the vast majority of former Plexus lawyers have already left, while many of Ince’s partners and associates have been finding new homes in recent weeks.
Ince managing partner Jennette Newman, who joined from Clyde & Co in late 2021, is now at Horwich Farrelly, where she is head of its London markets team.
Legal Business understands that a team of senior Ince lawyers is set to join Wikborg Rein, while Irwin Mitchell and Birketts are also believed to be in talks to recruit lawyers in London and Bristol.
RPC recently recruited Ince’s head of corporate, partner James Channo, as well as general liability partner Thom Lumley, formerly of Plexus, while a number of other former Ince lawyers have joined Child & Child, which is now led by Adrian Biles, the former head of Gordon Dadds – the firm which led the initial pre-pack administration of Ince in 2019.
Earlier this month, Ince’s head of travel Anna Anatolitou took a team to DAC Beachcroft, and that firm has also recruited a raft of former Plexus partners, including Nicola Skeldon and Louise Shaw in Manchester and Anthony Baker, Gavin McClenaghan, Ciaran Garnett, Carl McGuire and Stephen Johnson in Leeds.
DWF has also snapped up a large contingent of former Plexus lawyers, including Damon Burt and Anthony Bushell in Birmingham, while Kennedys acquired a nine-strong liability team from Plexus led by Mark Dyson in July.
While the majority of lawyers affected by the collapse have been able to find new homes, it is understood that hundreds of business services staff across Axiom, Ince and Plexus have been left in the lurch as lawyers jump ship, taking clients and ongoing matters with them. Limited support has been made available to business support staff, and a spokesperson for the group has appealed to the wider legal profession to offer assistance to those left behind where possible.
‘A business services professional at Axiom Ince told Legal Business: ‘It’s unsatisfactory. Non fee earning staff are being left in the lurch while the lawyers are being encouraged to sort themselves out. We have colleagues who have worked for the firm for over 30 years with no communication about redundancy or whether we will be paid.’
If you have been affected by the situation, professional services recruiter Anthem Consulting is available to discuss business service roles in the legal and wider professional services sector.
Modhwadia is being represented by Timur Rustem of Rustem Guardian Solicitors.
Axiom – which has no connection to alternative legal services provider Axiom Law – was formed by the merger of Axiom Stone and DWFM Beckman in 2021 to create Axiom DWFM. Its chairman is former SJ Berwin partner Jonathan Metliss.