‘Uncertainty’ over future
Listed legal business RBG Holdings has “temporarily suspended” its public trading amid worries about its solvency.
RBG, the listed legal business that owns London law firms Rosenblatt and Memery Crystal, has dominated headlines in recent weeks following a public dispute with its founder and largest shareholder, Ian Rosenblatt. The company accused Rosenblatt of being “verbally abusive” towards a lender and breaching agreements with the group. In response, Rosenblatt denied the allegations, describing them as “substantially untrue and defamatory,” and further accused RBG of being insolvent.
Since then Rosenblatt Law Ltd (RLL), a new firm purchased by Ian Rosenblatt, has entered into an exclusive negotiation period with RBG in order to purchase a law firm, Rosenblatt, that was owned by RBG.
Now, however, the outfit has provided an update on its financial position and effort to “secure a solvent solution for the company”.
The notice states that RBG has been in discussions with Ian Rosenblatt and another party to look for a potential transaction on a solvent basis. “The Board regrettably announces, however, that while discussions with RLL in relation to the “Rosenblatt” branded business are ongoing, all discussions with the other party in relation to a transaction on a solvent basis have ceased,” it states.
It continues: “Having considered the Company’s financial position and the lack of progress regarding the various strategic options explored, it is the Board’s view that it is unlikely to be able to secure the funding that it requires in a timely manner to secure the Company’s future”, it continues, before adding that the Board is “now taking action to protect value in the business for the Company’s creditors and other stakeholders.”
“In light of the uncertainty regarding the Group’s financial position” trading was suspended this morning having closed at 0.89p yesterday. The stock hit its all time high in 2021 at 160p, with the highest figure this year coming in at 13p.
The notice states that “further announcements will be made in due course”, and comes after RBG announced an extension to its exclusivity period with Ian Rosenblatt late last week.
