The founder of RBG Holdings, Ian Rosenblatt, has declared the listed legal services group “insolvent” amidst an intensifying boardroom dispute. The situation reached a critical point as Rosenblatt threatened legal action against the board over what he describes as “defamatory” market statements following his removal from the company.
The Aim-listed group announced the suspension of Rosenblatt’s consultancy agreement, citing alleged breaches of agreements through the establishment of a competing business. The company’s shares plummeted by 47.6 per cent to 1½p, reflecting investor concerns over the escalating situation.
The conflict stems from Rosenblatt’s September 2024 call for the removal of Chief Executive Jon Divers and two non-executive directors. The situation deteriorated when Rosenblatt filed a winding-up petition against RPG Holdings regarding alleged outstanding debts.
RBG’s management claims Rosenblatt acquired and renamed a regulated law firm to Rosenblatt Law in 2024, allegedly violating restrictive covenant agreements. Rosenblatt counters that this acquisition was authorised by Interpath, the restructuring advisers, as a potential vehicle for acquiring parts of RBG should it face insolvency.
The company’s financial health has come under scrutiny, with Rosenblatt alleging that HSBC, RBG’s lender, engaged Interpath to explore refinancing options or potential asset sales. RBG maintains its solvency but acknowledges working with advisers on refinancing options.
The dispute has raised concerns about corporate governance and the future of the legal services group, which employs over 200 staff. Rosenblatt claims the company owes him more than £500,000 in overdue remuneration, while RBG has notified the Solicitors Regulation Authority about the ongoing issues.
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