The inevitable post-Jackson shake down continues to make itself felt across the industry.
Back in December 2016, costs firm Just Costs Ltd entered into a company voluntary arrangement (CVA) due to significant debts including owing £781,758 to HM Revenue & Customs.
In a statement at the time, the firm said:
‘The business has traded profitably every year since our inception in 2006. We continue to do so and our forecasts moving forward show continued profitability. We continue to have the total support of our bank and funders. … We will be meeting our liabilities in full. … We are dealing with work of an ever-increasing value and complexity. It is business as usual.’
Presumably matters did not go quite as smoothly as anticipated as Just Costs Ltd has just folded, only to be reborn as Just Costs Solicitors Ltd by means of a pre-pack administration deal.
Back in December 2016, it was explained that Just Costs had “consolidated” from four to two offices and reduced its headcount from 110 to 70.
The latest statement, explaining the CVA, states that it has saved 46 jobs.
It is clearly a good thing that so many jobs have been saved but 46 must be viewed as against 70 less than a year ago and 110 before that.
It must not be overlooked that these job losses have come about following just the first wave of the Jackson reforms, with the negative impact being felt largely in the fast-track arena. The next wave of reforms has yet to strike.