MLL Ltd (UK company number 05907992) trades as part of the Metamorph Law group and owns the well-known Linder Myers as well as SLC Solicitors, Verisona Law and Donnelly &Elliott. The company faces a winding-up petition presented to the Companies Court by HM Revenue & Customs (HMRC).
Metamorph owns MLL and has 14 solicitor brands in the UK and reportedly has 300 – 650 employees. It has been recently reported that Metamorph delayed paying staff. The companies accounts for 2021 are overdue, according to Companies House but its most recently filed accounts showed a £2.1m loss on a turnover of £16.4m. The company had assets worth £11.2m but owed creditors almost £11.6m within one year.
Since the return to normality after Covid-19 the number of winding-up petitions being heard in London has increased rapidly, particularly HMRC winding-up petitions which have increased rapidly in recent months. The pandemic was stated in the company’s last accounts to have had a ‘mixed impact’ on the group, with areas such as trusts & probate and family increasing in demand but the courts slowdown reducing its ability to complete cases. Furlough was used to help manage the financial impact of this situation, which also enabled the retention of key skills and capacity within the business.
“We are working hard and in collaboration with HMRC to resolve any outstanding matters in relation to our company MLL. The board is very confident the matter will be resolved with no interruption to client service. The plans that we are working through will ensure that our clients’ interests are protected at all times, which is and always will be, our paramount concern. ‘That said, the action of HMRC was a shock to everyone. As a result we will be making a number of changes in the business to avoid a repetition.”
Metamorph Spokesperson
The HMRC petition has not yet been advertised in the London Gazette (and may not be if the debt is paid in full well before the first hearing). Otherwise once advertised the Company’s bank accounts may be frozen due to the operation of s127 of the Insolvency Act which makes all disposals of the Company’s assets void unless validated by the Court. Unless the company can pay the debt or agree further time to pay the debt owed or persuade the Court to grant an adjournment the company is likely to be wound up via the process of the winding-up petition.
“We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money.”
HMRC Spokesperson
Metamorph is an alternative business structure registered with the SRA and operating a joint venture with Assure Law and was set up with an initial £4m war chest made available to buy up to 60 firms. It has bought up legal brands often through administration and includes firms such Knight Polson Solicitors, Parott & Coales, SLC Solicitors and Verisona Law. The company also owns the declining QualitySolicitors brand.