The SRA intervened in a company in South Wales which had gone into liquidation.
The regulator said its intervention was necessary to protect the interests of clients and former clients of John W Davies Legal Ltd, which had offices in Newport and Chepstow. The intervention also applies to the sole remaining director of the company, Danielle Evans.
According to Companies House records, the company went into voluntary liquidation in March and a resolution to liquidate the company was passed shortly thereafter.
A statement released by liquidator Ruth Ellen, of insolvency firm Maxwell Davies, said John W Davies Ltd had work in progress worth around £389,000 at the time it closed for business, but it shouldn’t do anything.
Based on the company’s assets, there will only be £17,000 available to secured creditors – not even enough to cover back wages, holiday pay and pension payments due to staff, which will escalate. amount to around £28,000.
The total due to unsecured creditors is £1.22 million, of which approximately £500,000 is due to trade creditors, £280,000 to outstanding professional indemnity insurance and £204,000 to unsecured claims from employees.
On its website, John W Davies Solicitors said it was no longer licensed and regulated to engage in reserved legal activities from January 31 this year.
The firm said: ‘The decision to close the firm came as a result of several factors, the increase in running costs, in particular the professional liability insurance premium which has increased significantly and the ripple effect of Covid-19.
“We would like to apologize to our customers, old and new, for any inconvenience this may cause, but rest assured that we are still handling certain administrative tasks after January 31 to meet our professional obligations to our customers and stakeholders. “
John W Davies Solicitors was founded in 1927 and claimed to be the oldest established law firm in South Wales under its original name. She specializes in residential and commercial transfers, family law, wills, estates and trusts.