Embattled law firm Slater & Gordon will be shutting down the conveyancing arm of its business in Australia less than five years since the acquisition of Queensland specialist Conveyancing Works Solicitors.
On Thursday, staff at Slater & Gordon confirmed the conveyancing business will be winding down between now and the end of the calendar year.
The Australian Financial Review understands the law firm is not taking on any new conveyancing clients and the closure will affect around 70 staff in the conveyancing team.
A Slater & Gordon spokeswoman confirmed on Thursday the law firm is proposing to wind down its Conveyancing Works business. This only affects the law firm's residential conveyancing and not the commercial conveyancing services.
"The interests of all Conveyancing Works clients will be protected as any changes are implemented, and we will be in contact with our clients to keep them informed," she said.
"As we are currently in a consultation process, no final decisions have been made about the number of staff impacted."
Company under pressure
The law firm acquired Conveyancing Works Solicitors in November 2011 for about $5 million and relaunched under the banner of "Slater & Gordon's Conveyancing Works".
At the time of the acquisition the company had forecast full-year revenue of $8.5 million and had 14 per cent market share of the domestic conveyancing services market in Queensland.
The company is under pressure to cut costs and boost cash flow after striking an agreement with its banks earlier this year to extent the repayment date on its debt. Slater & Gordon has flagged staff cuts in the UK business as it closes certain offices. But staff cuts have also extended to the Australian business.
The decision to close the conveyancing business comes after the law firm flagged in August in its 2016 financial report the conveyancing practice "continued to perform below expectations and a strategic review will be completed shortly".
In the report Slaters said a deteriorating performance in conveyancing contributed to a decline in normalised earnings before interest, tax, depreciation, amortisation and movement in work in progress.
