Cubism offices, Holborn

'New law' firm Cubism Law has started conversations with administrators as it battles to avoid collapse, in what would be one of the first major failures in the rapidly expanding industry.

The firm is holding talks about an "orderly wind-down of the business", which could take place as soon as next week (July 22-26), according to a person close to the situation.

Documents seen by Legal Week, dated July 5, show that the firm had expected to complete its winding up process on Friday (July 12), engaging Pinsent Masons restructuring partner Samantha Palmer and administrator Andrew Hosking of Quantuma.

Meanwhile, three more people, including a former Cubism lawyer, said the outfit is about to close its doors.

A spokesperson for Cubism said in a statement to Legal Week: "Cubism Law is continuing to review the scope and extent of its business activities following the recent departure of a number of legal consultants. The continued protection of our clients' best interests remains our focus.

"We have [done], and will continue to do, everything we can to ensure that our clients are well looked after. In some instances, where this involves the transfer of a client to another firm, we are ensuring that it is carried out in an orderly and professional manner." 

The development follows Legal Week's story last month that the firm had lost dozens of fee-earners and other staff to rival firms. Corporate boutique Gunnercooke is in the process of taking on about 16 of Cubism's fee-earners, as well as other staff, while listed firm Keystone Law is bringing in about eight lawyers.

The firm, which earlier this year counted about 60 lawyers in its consultant base, has since lost a slew of other lawyers to boutiques across London, including Bates Wells Braithwaite, Laytons (which has hired at least two Cubism consultants), Eldwick Law in Mayfair and Marylebone-based Kyriakides & Braier, among others.

A wind-down of Cubism would mark one of the most high-profile failures of the burgeoning 'New Law' market of non-traditional law firms that attempt to offer more affordable legal services using innovative internal structures and enhanced technology.

Cubism is the umbrella company for a network of associated businesses, which include Nabas International Lawyers, immigration specialist Arkas Law, and leasehold specialists Freshlaw, which all share office space with Cubism at 1 Plough Place in Holborn.

One person said Cubism had at one point looked into listing on the stock market with a view to raising about £3.5 million.

Cubism was founded in 2007 by ex-Fieldfisher disputes partner Andrew Pena. The management team now comprises Pena, as well as ex-Clarke Willmott chief David Sedgwick (who has general oversight of the business), legal recruitment veteran Simon Chadwick, HR director Anita Murthy and compliance head Manjit Sansi.

Quantuma's Hosking has previously acted on the administrations of King & Wood Mallesons and Ince & Co.