Shepherd & Wedderburn acquires failed Tods Murray
As many as 50 jobs may go following law firm Shepherd and Wedderburn’s acquisition of Tods Murray which went into administration last night.
Tom MacLennan and Iain Fraser, partners with FRP Advisory, were appointed joint administrators and immediately sold the business for an undisclosed sum.
The 170 Tods Murray partners and staff will transfer to Shepherd and Wedderburn but a consultation will begin on Monday that is likely to lead to a number of redundancies.
MacLennan said: “Tods Murray had exhausted every option to turn the business around, and was faced with an unsustainable gap between high fixed costs and income. Administration was the only alternative for the firm, but we are delighted that Shepherd and Wedderburn has acquired the Tods Murray business, and will provide the partners and staff with a stronger platform from which to service their clients.”
Stephen Gibb, chief executive of Shepherd and Wedderburn, said the deal was “ideally timed for our business. This acquisition is a further significant step forward in our established growth strategy.”
During the last 18 months, the firm has hired four high profile staff for key roles and announced three internal promotions. The said the acquisition of Tods Murray aligns with its intention unveiled earlier this year to go on the acquisition trail for firms of the “right fit and quality’’.
18 Tods Murray partners will join as partners, five as directors and seven as consultants. The Tods Murray offices at Edinburgh Quay and Bothwell Street, Glasgow will be closed by early next year.
All retained staff will move to Shepherd and Wedderburn’s offices at Exchange Crescent, Edinburgh and West George Street, Glasgow.
The expanded firm will have 564 staff, including 82 partners.
For the year ending April 2014, turnover at Shepherd and Wedderburn increased from £35.9m to £38.3m and net profit rose by 10 per cent to £14.3m.
David Dunsire, executive partner at Tods Murray added: “This change marks the start of a new era for the partners and staff of Tods Murray. We are grateful for the support of our clients over the years and look forward to working with our new colleagues at Shepherd and Wedderburn.”