Collapse of Morisons followed partner exodus
Morisons’ collapse came in the wake of a number of partner resignations, documents have shown.
Administrators FRP Advisory’s report states that the departures “would have resulted in a significant loss of both clients and turnover” at the firm, whose origins are in the 1860s.
After the remaining partners took advice and looked at the financial position of the firm it became apparent that in the absence of significant investment the business would not be viable.
A rival firm was approached in February to discuss the acquisition of Morisons but no deal was struck and administrators were called in.
The firm’s work in progress was sold for about £236,000. It is expected to leave a shortfall owed to creditors of about £1.6 million.
Morisons’ management accounts for the period ending 28 February show the practice made a net profit of £950,000 and that its turnover was £4.9m.