Chesterfield solicitors firm closes with debts of nearly £1.3million - owing staff £300,000

Spencers Solicitors, which had operated in various guises since 1975, called in liquidators earlier this year and it can now be revealed they owe employees more than £300,000.

That figure is part of £1,716,365.07 owed to around 30 creditors, with directors estimating they had £426,394 worth of assets at the time of liquidation - leaving a deficit of nearly £1.3million.

Among the monies owed is a £402,908 directors loan provided by John Spencer, 61, and a separate loan of £315,848 provided by a Mrs S Spencer. Employees are listed as being owed £300,912.36 - though the statement doesn’t reveal how many employed are owed money - with HMRC owed £217,463.52.

At the other end of the scale TalkTalk Business is owed £24.50 and Companies House owed £12.

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Vicarage Chambers, based in Leeds, has been appointed as liquidators with a statement of affairs, signed by director Robert Landman, director at Spencers Solicitors, published towards the end of May. Mr Landman was appointed as director of the company in 2013 – with John Spencer being appointed chairman.

In their latest financial statements - for the year ending June 30, 2021 - the business reported equity of nearly £1.1million with £319,409 listed as cash at bank and in hand.

The company first opened as Cutts Shiers Solicitors nearly five decades ago and, in that time, underwent various structural changes. It was renamed CS2 Lawyers in 2000 before becoming Spencers Solicitors in 2011 - with the company playing a specialist role in personal injury lawsuits.

In 2015 the company moved from Millennium Way to Spire Walk Business Park where they operated until dissolving this year.

When approached by the Derbyshire Times for comment, liquidators said they weren’t yet in a position to comment on the reasons behind the liquidation, and would be unable to comment on how many staff were owed wages.

Robert Landman, director at Spencers Solicitors, has been approached for comment.