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KWM administrators launch investigation into European arm’s collapse

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But a final verdict is a ‘long way down the line’

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The administrators of King & Wood Mallesons (KWM) now defunct UK, European and Middle East (EUME) arm have confirmed that an investigation into the firm’s collapse is now underway.

In a statement released yesterday afternoon, a spokesperson for Quantuma — the Southampton-based restructuring specialist tasked with picking through the KWM wreckage — revealed that “an investigation into the law firm’s management and accounting practices is underway.”

Stressing that this type of enquiry was “typical with any insolvency”, the spokesperson said a “final verdict on KWM”, which formally entered into administration last month, was “a long way down the line”.

Late last year, with the firm’s EUME arm’s future looking uncertain, Legal Cheek revealed a secret rescue plan that would eventually see all of the KWM’s 60 or so stranded trainees being taken on elsewhere. Despite initial skepticism from some readers, we reported earlier this month that all the outfit’s former trainees had now secured alternative positions since having had their training contracts cancelled.

Firms stepping in to help out included Allen & Overy, Ashurst, Baker McKenzie, DLA Piper, Fieldfisher, Freshfields, Fried Frank, Goodwin Procter, Greenberg Traurig, Hogan Lovells, Holman Fenwick Willan, Macfarlanes, Osborne Clarke, Reed Smith, Stephenson Harwood and White & Case.

But KWM Global will continue to have a presence in the City. Just days after its EUME operation went under, KWM 2.0 — which is based near St Paul’s — trumpeted its arrival on the London legal scene. This is possible because China-led KWM Global has always been a separate legal entity to KWM EUME.

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8 Comments

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Southampton*

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(4)(0)

Anonymous

With all due respect, that’s probably the reason why Thomas wasn’t able to secure a Pupillage after completing his BPTC at Northumbria University. Aspiring barristers need to have stellar attention to detail.

(10)(4)

Former KWM fee earner

“Late last year, with the firm’s EUME arm’s future looking uncertain, Legal Cheek revealed a secret rescue plan that would eventually see all of the KWM’s 60 or so stranded trainees being taken on elsewhere.”

Quit lying you asshats, you didn’t reveal shyte. It was the trainees’own footwork, phonecalls and dozens of emails that managed to get them placed, not some ‘rescue plan’. There are still a few who fell asleep behind the wheel and now got jack squat.

(19)(0)

Anonymous

“Secret rescue plan”

That suggests common understanding between the firms and benevolent intentions.

Meanwhile outside la-la land things are driven by commercial reality – an opportunity to take on pre-vetted, partially trained people without up-front investment.

(8)(0)

Anonymous

Any plans to re-house the trainees were not secret, and it would have been in no ones interests for them to be so!

You seriously need to stop blowing smoke up your own backside and stop these consistent phrases in articles, that are 1) untrue and 2) just bring up old stories unnecessarily to bulk out the current story.

(9)(0)

Anonymous

Are you new to this blog? That’s how LC writes 95% of its articles. The remaining 5% are gormless puff-pieces paid for by their sponsors.

(7)(0)

Anonymous

The LC bashing is boring. Take the site for what it is. It’s infinitely more interesting than its Friday equivalent.

(0)(2)

Anonymous

Hi Alex.

(0)(0)

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