Quantuma experts have been named as  joint administrators of Armstrong Teasdale. The US wing of the American law giant is unaffected.

Since launching in 1901, Armstrong Teasdale has secured its spot among the world’s top law firms. With gross revenue of $218 million in fiscal year 2023, the firm counted 350 lawyers in its ranks including 80 equity partners who earned $591,000 a year on average. However, this firm financial footing has never quite translated to its UK arm.

Armstrong Teasdale expanded its international footprint with its first office outside of the US in 2021 through the acquisition of London firm Kerman Legal Services. The move saw staff move into prestigious new premises, in the refurbished Royal College of Surgeons building by Lincoln’s Inn Fields, in 2022. But according to the firm’s filings, the London office generated approximately £10,737,411 in revenue for 2022, and only made about £185,801 in profit before tax from that – a margin of less than 2%.

With reports of various compliance issues – some related to the legacy it inherited from the Kerman Legal Service Deal – these narrow margins seem to have put the firm in a difficult spot. As a result, while 57 people had been employed in London, most had already found employment in new roles before it fell into administration.

Joint administrators were appointed from Quantuma, to handle the affairs of Armstrong Teasdale. Quantuma managing directors Sean Bucknall, Andrew Hosking and its chief executive officer, Carl Jackson, made the remaining staff redundant on arrival – only retaining a few to help with the administration process.

Bucknall commented, “The UK operations of Armstrong Teasdale had, until more recently, been profitable and a strong addition to the wider Armstrong Teasdale business within the US. However, a series of well-documented senior team departures severely compromised the UK firm’s ability to trade profitably and has resulted in the requirement to compliantly wind down the UK’s operations.”

Looking ahead, it is understood that the firm and administrators have liaised with the Solicitors Regulation Authority to ensure the closing down process meets regulatory requirements. A notice on the Armstrong Teasdale’s website states that all client files have been transferred to other SRA-regulated firms. Clients are advised that their new firm will be in direct contact, although they are free to instruct any other solicitor of their choice.