Plexus Law has filed a second notice of intention (NOI) to appoint administrators, Insurance Business can reveal.
Filed this week, the second NOI comes as the insurance law firm continues to look for an investor or a buyer after backing was withdrawn earlier this year. In the meantime, Plexus continues to operate as normal.
In a statement sent to Insurance Business, a spokesperson for the Leeds-headquartered firm said: “Plexus was successful in securing additional funding from its investors in March 2023. This funding was needed due to the ongoing impact of serious financial irregularities discovered by management after Plexus was acquired in 2019.
“The terms of the new investment were subject to a number of conditions. Unfortunately, after a period of negotiation, we have been unable to broker the necessary agreements to meet all of those conditions. As a result, investor support has been withdrawn.”
A NOI essentially buys Plexus time to turn things around and avoid liquidation.
The spokesperson went on to say: “In these circumstances, we are now looking to raise fresh funds for the firm from a new investor. This may involve a sale or merger of part or all of the business with another firm.
“We are incredibly grateful to our dedicated employees who continue to work tirelessly to achieve the very best outcomes for clients. We are committed to ensuring those high standards are upheld throughout this current process.”
Insurance Business will update this story as more information becomes available.
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