Scots firm Semple Fraser is set to go into administration after being hit hard by the downturn and a drop-off in work in its key areas of corporate, property and construction.

The firm today (6 March) confirmed it has filed notice of intention to appoint an administrator, with administration described as "the only option."

The 20-partner firm, which has around 100 staff acrosss three offices in Glasgow, Edinburgh and Manchester is now likely to be the subject of a fire-sale. News of the administration follows what the firm described as an "exhaustive review of the business".

Managing partner Simon Etchells confirmed the collapse stating that Semple Fraser had been unable to overcome financial problems caused by a contracting commercial legal services market.

Etchells said: "It is with great regret that after having considered every possible option to secure the future of the business it was clear that administration is the only option."

Legal Week understands that Weightmans are in talks to take on the Manchester team, a deal which could add about £1.5m a year in revenue to the fast-growing UK firm.

Maclay Murray & Spens has been touted as a potential candidate to acquire the firm's Glasgow base, with the Edinburgh base also understood to be talking to Scots firms.

Commenting on the speculation, Maclays chief executive Chris Smylie said: "Our focus on prudent, sustainable growth and commitment to providing clients with the very best lawyers available make MMS an attractive destination for senior lateral hires.

"We know that Semple Fraser has a lot of top quality clients and first-rate people and, of course, we are always looking at opportunities. However, there is nothing in place that constitutes an arrangement."

Semple Fraser's collapse comes amid a time of much market upheaval north of the border. Last year saw McGrigors merge into Pinsent Masons, while DWF acquired Biggart Baillie, and Archibald Campbell & Harley and Andersons Solicitors tied up with Shoosmiths and DAC Beachcroft respectively.

In addition, Burness and Paull & Williamsons recently completed a merger while Simpson & Marwick is in talks over a potential tie-up with Kennedys.

It also comes only weeks after Manchester firm Cobbetts called in administrators, with the bulk of the firm subsequently joining DWF through a pre-pack acquisition.

Lorna Jack, chief executive of the Law Society of Scotland, said: "It is very sad news to hear that Semple Fraser is to go into administration. Many law firms have struggled during the economic downturn; however. that is no consolation to those who make the difficult decision to close their business and the impact it has on their colleagues.

"Clients of the firm can contact their usual partner contact, or managing partner Simon Etchells, if they have any enquiries or concerns. We would encourage any solicitors or trainees affected by today's announcement, who are seeking support or advice to contact the Law Society's professional practice and support team on 0131 226 7411."