Combination of problems brought down leading Bath law firm

The joint administrators of BLB Solicitors Limited have revealed how the firm, which had offices in Bath and Wiltshire, reached breaking point.

The former BLB Solicitors offices on George Street in Bath

They say there will be enough to pay preferential and secondary preferential creditors, but unsecured creditors are unlikely to recover anything.

Around 90 staff lost their jobs when the firm, which had offices in Edgar Buildings in George Street in Bath, as well as in Bradford-on-Avon, Trowbridge, and Swindon, collapsed into administration at the end of April.

On 5th May, the Solicitors Regulation Authority (SRA) carried out an intervention into BLB Solicitors, with firm Stephensons Solicitors LLP appointed to collect clients’ files and keep them safe.

BLB Solicitors’ services included conveyancing, family law, wills and probate, commercial property, employment law, and personal injury and medical negligence.

In a notice published this month, the joint administrators of BLB Solicitors, Gareth Buckley and Steve Elliott from The Insolvency Company, say the established regional law firm traded profitably until recent years.

Detailing the events leading up to the administration, they say the firm had experienced “increasing financial pressure arising from a combination of market, operational and trading factors”.

They explain: “A significant contributor to the company’s difficulties was the performance of its clinical negligence department. Historically, the department operated with a relatively consistent cycle of opening and settling cases, generating a steady stream of fee income.

“Following the Covid-19 pandemic, this pattern became disrupted, resulting in periods where the department incurred substantial ongoing costs without corresponding fee recoveries.

“Whilst the wider business was capable of supporting one year of reduced fee generation, it did not have sufficient scale or financial resources to absorb multiple consecutive years of below-budget performance.

“The position deteriorated further when forecasts for the 2026/27 financial year were significantly downgraded by the head of department, materially reducing anticipated future income and adversely impacting the company’s budgeting and cash flow projections.”

The company also faced a number of challenges within its core legal teams: “During the preceding year, substantial investment had been made in recruitment and training, with a number of new fee earners requiring time to become established and generate fees at expected levels. In addition, the company was adversely affected by a slowdown in conveyancing transactions at the start of the financial year, which persisted longer than anticipated due to uncertainty surrounding the Government Budget.

“Although activity levels subsequently recovered, the prolonged downturn had a negative impact on income generation.”

Further pressure arose from increased employment costs following changes to National Insurance contributions, together with recruitment costs incurred following the departure of several key members of staff.

A new case management system, whilst necessary due to the existing system becoming obsolete, also resulted in a temporary reduction in productivity as staff adapted to the new platform.

The administrators say: “The cumulative effect of these factors placed increasing pressure on the company’s cash flow and financial position. Following a review of the company’s forecasts and available funding, the directors concluded that the company was unable to continue trading without the protection afforded by an insolvency process and sought advice from insolvency practitioners in March 2026.

“Following those discussions, it was determined that administration represented the most appropriate course of action and the business to be potentially sold as a going concern.”

An offer for the business and assets was agreed upon but the purchaser ultimately withdrew their offer, leaving no option but to cease trading.

The administrators anticipate that there will be sufficient funds to pay preferential and secondary preferential creditors.

However, it is uncertain at this stage if there will be enough funds to pay unsecured creditors, who are owed around £2.53 million, as this is dependent on any surplus of debtor recoveries from the SRA.

Agents have been instructed by the administrators to undertake valuations of the two freehold premises in Trowbridge and they are being advertised for sale.