Case Study: Volume RTA Phased Closure

RTA phased closure

When a volume RTA operation decided that the time had come to exit the market, the prospect of ceasing to take new work but maintaining resources to complete 12,000 cases was a challenging one.

Engaging with Recovery First, the firm undertook a full review of their open matters to establish the true position on meritorious claims and took the opportunity to cleanse the book of ‘dead wood’.

Next came a review of resources, their capacity and existing workloads.

Having been a large, local employer for many years their staff turnover had been low with a number of long serving members on the team and there was a strong desire to be fair and supportive of everyone.  Early discussions with the team were started to ensure that everyone was aware of the plans to phase an exit out of the market over an 18-month period.

 Inevitably this would involve ongoing reviews of resources and the need to rationalise, but a generous incentive and redundancy structure was put in place to ensure that appropriately qualified people were retained to complete the cases, and those who could not be retained received a redundancy payment.

Recovery First’s ongoing review ensured that there was no slow down in case settlements, nor the settlement level, and that costs were appropriately reduced to match the reduction in case load.

As a separate exercise, cases where clients had ceased to cooperate, had provided fraudulent information or had simple decided not to pursue their valid claims were revisited and a project undertaken to reclaim costs and paid disbursements as a result of the clients’ breach of their CFA.

Ultimately, at the point where the original case load of 12,000 files had reduced to under 2,000 it became no longer economically viable to maintain an office infrastructure with staff.  The cases were passed, via an Asset Purchase Agreement, to panel firms at Recovery First, who completed the cases and realised the value of the work already done by the original firm.

By phasing the exit this firm was able to maximise the recovery of their valuable WIP asset whilst managing their costs base in line with a diminishing case load and, at the tail end, close-down, knowing that they would still realise the value of their WIP from the residual cases to be completed via Recovery First.

This solution works equally well for firms who are looking to restructure and exit only specific work types, close an office or offices, or work towards an orderly firm closure.

If you’d like to learn more about Recovery First and how they may be able to assist your organisation, contact us in confidence –

It's never too late to speak to Recovery First. Contact us now in the strictest confidence

Sally Dunscombe:

David Johnstone:


01357 440140

Manchester Address

106 Kennedy Building

Murray Street


M4 6HS

Registered Address: 

North Torfoot



ML10 6QG