The owner of a leading City law firm linked to millionaire Labour donor Ian Rosenblatt has collapsed into bankruptcy after a run of losses.
RBG Holdings on Monday said it would be winding down in the coming days after its directors failed to appoint administrators. Companies typically fail to appoint administrators when they lack sufficient cash to pay the fees that would be owed to the bankruptcy specialists.
RBG Holdings is the listed vehicle that owns Rosenblatt, a law firm founded by Labour donor Mr Rosenblatt. The holding company’s stock market float in 2018 marked only the fourth time a law firm had gone public.
However, its share price has fallen by more than 90pc from its peak in 2021. In the years following its initial public offering, the City firm pushed to expand its business but this costly drive has led to a series of multimillion-pound losses.
Mr Rosenblatt, who helped to fund Sir Keir Starmer’s electoral campaign, is RBG Holdings’ largest shareholder with a 20.52pc stake in the publicly listed business and has enjoyed millions of pounds’ worth of payouts from the company since it joined the stock market.
More recently, however, he has been in conflict with RBG Holding’s management over strategy and leadership of the business. Mr Rosenblatt had a consultancy agreement with RBG terminated in January amid a war of words between the two sides. That same month he set up Rosenblatt Law, a rival firm, and poached 40 of Rosenblatt’s most senior lawyers.
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