Over a quarter of law firms in the south west are at risk of failure in the next 12 months, according to a new report.
The research, published by insolvency trade body, R3, says 28% of law firms are at risk, the same figure as reported last year.
Despite this, the figures from Bureau van Dijk’s ‘Fame’ database show that the south west continues to outperform the UK’s legal sector as a whole, with 31% of law firms currently at risk across the UK.
Joanne Rumley, chair of the R3 South West and Wales region, said: “The legal services sector remains a very crowded market and firms which don’t adapt and aren’t competitive are likely to struggle.
“Careful planning and cash flow management can go a long way to help give businesses an edge, as can prioritising considered investment in new technology and branding and marketing activities when funds do become available.”
Sign up to the Business Cornwall magazine app for iPad
