BLB Solicitors Collapse: £2.5m Owed to Unsecured Creditors
BLB Solicitors Collapse: £2.5m Owed to Creditors

BLB Solicitors, a South West law firm that ceased trading abruptly earlier this year, is unlikely to repay the £2.53 million it owes to unsecured creditors, according to new filings from administrators.

Administration and Failed Sale

The firm appointed administrators from The Insolvency Company, part of Sumer Group, at the end of April. A deal to sell the business as a going concern fell through after the buyer withdrew at the final hour, leaving no time to market the firm for sale, documents state.

BLB had offices across Bath, Bristol, Swindon, Almondsbury, Trowbridge and Bradford-on-Avon. The company traded profitably until recent years but faced a prolonged slowdown in conveyancing transactions, increased staffing costs, departures and a new case management system in 2024.

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Financial Losses and Contributing Factors

These factors resulted in an operating loss of £241,115, though the firm remained marginally profitable after tax, according to a statement of administrator's proposal on Companies House. A significant contributor to the company's difficulties was the performance of its clinical negligence department. BLB also faced challenges within its core legal teams and pressures from increased employment costs following a rise in employers' national insurance contributions.

“The cumulative effect of these factors placed increasing pressure on the company's cash flow and financial position,” the administrators wrote.

Creditors and Client File Handling

Following the collapse, BLB Solicitors owed unsecured creditors a total of £2.53 million. The administrators concluded that the company was unable to continue trading without the protection of an insolvency process and sought advice from insolvency practitioners in March 2026. It is understood there is now no hope of rescuing BLB, and administrators will realise property to make distributions to secured or preferential creditors.

The Solicitors Regulation Authority has appointed law firm Stephensons Solicitors to collect and safeguard files belonging to former BLB clients. Any enquiries regarding BLB should be directed to interventions@stephensons.co.uk.

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