Blankstone Sington - Case Update

The joint administrators of Blankstone Sington have revealed that a deal could not be reached for the firm despite extensive efforts by the administrators and their agents to market the business to approximately 140 potential suitors.

The Liverpool-based wealth management firm was placed in special administration on 13 October. Andrew Poxon, Alex Cadwallader and Hilary Pascoe of Leonard Curtis were appointed joint special administrators.

In their proposals, the administrators describe how the company had amassed a pension deficit by 2020 and was searching for a buyer or a solution for the company. A few potential deals were explored but never consummated.

In 2021, the company’s CEO and several members of management resigned, which led the company to communicate concerns to the FCA that it may not be able to hire suitable replacements, which would significantly hamper its ability to run its business. In November 2021, the company agreed to the terms of a voluntary requirement which prohibited it from accepting any new client money or disposing of its assets.

In October 22, the company engaged Leonard Curtis to present options for the business. Leonard Curtis identified two potential options: a sale of the business and a potential administration. Signature Corporate Finance was engaged to conduct an accelerated marketing exercise. As part of this process, Signature contacted approximately 140 firms, resulting in two offers. However, both parties eventually withdrew their interest, and the company’s directors resolved to place the company into special administration.

The administrators aim to return custody assets and client money by way of a transfer to one or more regulated brokers and are exploring expressions of interest. If this can be achieved, this would enable clients to access their assets and money more quickly than a direct distribution by the administrators.

The administrators anticipate it will not be possible to transfer the custody assets and client money without the protection of a formal bar date and distribution plan process, which are necessary to avoid the risks of distributions being delayed or reversed.

The initial meeting of clients and creditors is scheduled for today.

The joint administrators’ proposals can be found HERE. They have been assisted by Ashurst and Hill Dickinson.