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Ince Gordon Dadds starts redundancy talks

8th 02 2019

Gordon Dadds acquired top 50 firm Ince & Co at the end of December 2018 for a pre-pack deal of £27.3m. A pre-pack deal allows the purchaser to buy the business free of liabilities.
The firm has started the process of getting rid of duplicated roles and have put dozens, (at least 40), of the staff on notice of redundancy. The main notices have been issued to support staff, previously based at Ince & Co. Gordon Dadd's own Cardiff-based support team duplicate these roles and operate at a lower cost.
It is understood that the firm is only offering statutory redundancy to its staff. However, this source has not been confirmed by the firm. The firm has stressed that the redundancies are not just a "cost-cutting exercise" and will aim to retain people where possible. Those staff willing to go voluntarily will be offered an extra week's pay.
The firm has been off to a rocky start, with Ince & Co being placed into administration just before its acquisition.
Ince & Co cut 32 roles in London last year also. The firm guaranteed that it fully intended to settle all debts and using a pre-pack deal was not a way of avoiding Ince's existing obligations, but rather a way to generate some confidence for investors. But how secure are Ince's creditors really? The pre-pack is expected to generate significant losses for Ince's creditors, including banks such as RBS.