Firm sheds two lawyers as credit crunch bites

Jun 9 2008 by Tony McDonough, Liverpool Daily Post

We have always been careful to keep a good balance

THE first sign that the global credit crunch is affecting Liverpool’s professional sector has emerged after law firm Brabners Chaffe Street admitted a reduction in its headcount.

The company, which has recently moved into refurbished premises in Exchange Flags, told the Daily Post that one lawyer from its construction team and another from property finance had agreed to take voluntary redundancy.

The headcount reduction at the practice is less severe than was reported in the legal press at the end of May, when it was claimed up to four people were facing the axe.

However, it does indicate that Liverpool’s property and construction sectors, which have boomed in recent years, are now under pressure from the economic downturn.

The Daily Post spoke to other corporate law firms in the city including DLA Piper, DWF, Halliwells, Weightmans and Hill Dickinson. All insisted they had no plans for any headcount reductions.

Philip Rooney, managing partner of DLA, said: “Our construction practice is holding up well, not least because we are involved in long-term projects such as the new Mersey Gateway.

“We have always been careful to keep a good balance between the contentious and non-contentious work.

“We have seen a rise in the level of litigation, so our contentious team is busy. In fact, we have just relocated Martin Griffiths from our Manchester office to help with the caseload.

“Our real estate practice acts for long-term investors, including pension funds. These tend to be well-resourced, not reliant on finance and able to move quickly in this market. Many have large portfolios requiring active management, re-letting, re-gearing of leases and so on. All this activity creates a lot of work for lawyers.”

Brabners’ latest annual financial results showed a healthy 15% increase in turnover to £30m, but this growth is expected to slow in the coming year.

In August last year, the firm moved its Liverpool headquarters just a few yards from Dale Street to Horton House, part of the newly-refurbished Exchange Flags Complex.

Brabners also has offices in Manchester and Preston, and a recent recruitment drive saw staff numbers rise from 319 to 360.

tonymcdonough