Crisis-Hit Halliwells Sub-Let Spinningfields Office Space
Manchester-based law firm Halliwells, which is preparing to go into administration once a take-over deal has been agreed with rival Hill Dickinson, is reportedly sub-letting part of the office space it has taken at 3 Hardman Square, in Manchester’s popular Spinningfields location.
Last week, Halliwells filed court papers giving notice that it was planning to go into administration. The firm reportedly owes RBS around ┬ú20m and has suffered a string of partner departures over the last year.
The company started out on a 25-year lease for their office property at 3 Hardman Square, in Spinningfields, just three years ago – but according to TheBusinessDesk it has since sub-let some of their space to a number of other companies. These include insurer Ecclesiastical, accountants Campbell Woolley, corporate finance firm Ford Campbell, and NorthEdge.
It has been said that Hill Dickinson is keen to move into Spinningfields, but it is yet to be seen whether the firm will continue the original lease agreed by Halliwells, or negotiate new terms with Allied London ΓÇô the property developer behind the Spinningfields scheme.
Halliwells, which employs around 700 people and also has offices in Manchester, Liverpool, Sheffield and London, has released a statement regarding their current position.
It says: “The underlying business remains strong and has attracted interest from a number of parties. To provide Halliwells LLP with a period of stability to facilitate this transfer the firm has entered into a moratorium to protect the interests of clients and other stakeholders and to ensure business continues as usual.”
The cause behind the company crisis is said to be down to the economic downturn and high property costs, which has impacted profits.