As part of a series of announcements to the Australian Securities Exchange on Monday, embattled firm Slater & Gordon confirmed that it is likely that a 'number' of offices will close as part of a widespread re-organisation of the UK business. It appears likely that the restructure will significantly expand cuts already under negotiation at offices in Derby and Manchester, though the total number of UK redundancies is not yet known. A consultation process with some employees will begin this week and will continue for 'several months', the firm has indicated.

Massive UK write-down

Slater & Gordon revealed a massive loss of A$958m (£493m) on Monday, sending the firm's shares down 25 per cent to 62.5c per unit. The vast majority of the loss is attached to an A$814.2m write-down of the value of Slater & Gordon's UK business for the six months to 31 December. Specifically, the firm has suffered a write-down of goodwill arising from its £677m acquisition of the professional services arm of insurance outsourcer Quindell last year, though it is understood that performance was also lacklustre across the UK arm.

CEO offers resignation

Though total revenue at Slater & Gordon grew 82 per cent to A$487.5m, it has been eclipsed by total borrowing. Currently, the firm's long term borrowings stand at A$789.3m, though its facilities can be stretched to A$850.3m. Beyond culling its UK workforce, the firm has flagged cutting its debt as a top priority moving forward. It is understood that Slater & Gordon chief executive Andrew Grech offered his resignation over the poor result, but was refused by the firm's board. Sources: Law Society Gazette; Australian Financial Review; Legal Futures; The Lawyer