Pagan Osborne goes into administration

Pagan Osborne had attempted in recent times to rebalance the business and move away from domestic conveyancing but it would appear that declining margins and intense competition proved too much for the Fife firm.

Around 70 jobs are expected to be lost, with Thorntons stepping in to save around 50, including 10 partners. Tom MacLennan and Iain Fraser, partners with FRP Advisory, have been appointed as joint administrators.

Craig Nicol, joint managing partner of Thorntons, said the firm had been “highly respected”.

He added: “Our priority will be to provide a seamless transition for clients and to preserve the maximum number of jobs. We will be in contact with all Pagan Osborne clients imminently and I would seek to reassure them that they will receive continuity of service from the newly-enlarged Thorntons team for their legal or property matters in the coming days and weeks.”

Lorna Jack, chief executive of the Law Society of Scotland, said the demise of the firm “represents the loss of a long-established and highly regarded Scottish law firm operating across Fife and Edinburgh.”

She added: “There has been ongoing, significant change within the legal services sector which, combined with a challenging economic environment, continues to have an impact on law firms.

“We will work with both firms to help ensure a smooth transfer of and provide advice and support for our members. Pagan Osborne clients should continue to contact their solicitor about any ongoing business or transactions.”

A minimum 45 day redundancy consultation period will start this week, with Pagan Osborne’s offices in Edinburgh, Cupar and St Andrews set to close.

All staff in those offices will be advised that they are at risk of redundancy pending a review of employment requirements.

The Pagan Osborne office in Anstruther will be retained and rebranded as Thorntons, although some redundancies will be required there as well.

A number of smaller Fife-based firms have merged with Thorntons in recent years, including Steel Eldridge Stewart and Murray Donald in Fife as well as Kirkcaldy firm Clarkson Hamilton.