DEBTS of £3m led to the demise of 190-year-old Wirral law firm Lees Lloyd Whitley (LLW).

It ceased trading on Friday, but only confirmed its demise late on Monday, announcing it had been broken up with its main casework divided across several legal practices in Merseyside and Cheshire. Administrators were appointed yesterday and went to the firm’s Riverside Park offices to begin assessing the financial position of the firm. However, LDPBusiness understands that they are expected to find creditors are owed in the region of £3m.

Jonathan Booth and Robert Rutherford, partners of Liverpool insolvency practitioners Parkin S Booth, will handle LLW’s administration, although the company which remains is only a shell.

Mr Booth said: "Our work begins now – we need to complete an appraisal of the financial situation with a view to securing the best possible return for the general body of creditors."

The severe downturn in the UK housing market – which has hit remortgaging work especially badly – coupled with the recent loss of some major clients, are believed to have been key factors in LLW’s collapse.

The largest part of the demerger is the transfer of most of LLW’s commercial department and its probate work to Chester-based law firm Oliver & Co. Four LLW partners – Tim Polding, Frank Rogers, Paul Armstrong and David Sewell – have also moved.

He said: "The current economic climate has been extremely challenging for the legal profession. However, we are delighted to now be working together with Oliver & Co and look forward to an extremely positive future enabling us to provide an enhanced range of services to clients".