HALLIWELLS is widely expected to announce a deal today that will see Liverpool-based firm Hill Dickinson take over its Old Hall Street office.

The crisis-hit firm has been in talks with rival firms about a break-up of the business as it struggles to meet rent payments on its plush Manchester headquarters.

Sources at both Halliwells and Hill Dickinson told LDP Legal they were poised for an expected announcement today.

It is understood that Hill Dickinson will take over Halliwells’ Liverpool outlet as well as much of its Sheffield-based operation.

If that is the deal that emerges today, it is likely that both Halliwells’ managing partner Jonathan Brown and Liverpool office head Sue Russell will join Hill Dickinson.

Last week, it was announced that the firm’s executive chairman, Ian Austin, was going back to fee earning after agreeing to join niche commercial firm Heatons, in Manchester.

Two other regional firms have been linked with the remaining parts of Halliwells, which is based in Manchester’s Spinningfields.

More than three weeks ago, partners at the firm lodged a notice of intention to appoint administrators. But as that only had a 10-working-day shelf life, another notice was lodged, which runs out today.

The firm says it had to make the move after being “adversely impacted by high property costs” but that the “underlying business remains strong”.

When the news first broke, it was mooted that Hill Dickinson may take over the firm in its entirety, but those plans appeared to change as negotiations reached their conclusion.

Last night, when asked if the current deal had been put to a vote of the Hill Dickinson partnership, a source at the firm said: “It’s well beyond that.

“We’re just getting the procedural things done.

“We should have something to tell you on Tuesday. Hopefully they will conclude then.”

A Halliwells source also said: “Things are all moving totally in the right direction. Hopefully there will be an announcement on Tuesday.

“There are a couple of final details to be resolved, but they’re going to be resolved.

“I think it’s all on track.”

Earlier this year, Halliwells signed a £19m banking deal with RBS, which looked set to secure its future.

But the firm’s latest set of accounts also revealed profits have plummeted by 27%. In 2008, the firm made £23.4m profit. But, in the year ending April 30, 2009, that was down to just over £17m.