Hammonds' partnership has completed the multimillion-pound sell-off of debt litigation practice Drydens.

Drydens, which was set up in 1984 as a unit within Hammonds and spun off in 2003 as a separate law firm headed up by former Hammonds assistant Rachael Charmbury, has been sold to insolvency practitioner Philip Holden for several millions of pounds.

The sale was completed last week (12 June) after the business – which turns over approximately £7m a year – was put up for sale in February.

The sale saw all shareholders – including current and former Hammonds partners – bought out, severing all of Drydens' links with the national firm.

Holden, a Dipp Lupton Broomhead partner until 1997, headed up financial recovery at Lloyds of London until 2001, before leaving to set up debt recovery practice LCL Law. He will now attempt to grow Drydens' debt recovery and litigation offering.

Holden told Legal Week: "When Drydens was demerged in 2003, all shareholders were Hammonds partners. Some have now moved on to other firms but they remained shareholders in Drydens. Since I have bought it out, none of them have any interest in the business. It is a great, profitable firm which I am looking forward to seeing grow."

Earlier this year, Hammonds Direct, the firm's bulk conveyancing arm, entered into administration after suffering as a result of the market downturn.

Hammonds Direct was founded by former Hammonds' senior partner John Heller and Hammonds litigation partner Lucci Dammone in 1989, but the spin-off demerged from Hammonds in 2000, shortly before the national firm's merger with Edge Ellison. Hammonds' equity partners retained their share of the business.