CRISIS talks between stricken Halliwells and Liverpool-based Hill Dickinson were at “sensitive” stages yesterday.

The news came as it emerged some of Halliwells’ suppliers had not been paid for up to three months.

Halliwells announced on Friday it was in talks with another “highly regarded” firm about transferring the business “in its entirety”.

It came after partners at the firm, which recently moved into larger offices in Liverpool’s Plaza building, lodged a Notice of Intent to appoint administrators at the Companies Court on Thursday.

That gave the firm 10 days to appoint its own administrators without fear of being petitioned by creditors.

Sources close to the firm revealed it and Hill Dickinson have been in talks for around two months about how to manage a merger, which may involve Halliwells going into administration and Hill Dickinson buying the business as a going concern through a pre-pack deal.

A source close to the negotiations said: “It’s so sensitive at the moment, if I say anything it might be wrong within five minutes.”

Yesterday Halliwells’ press office said the firm’s managing partner, Jonathan Brown, who used to run the Liverpool office, was too busy to speak to journalists.