Accident Injury Solicitors collapses amid regulatory and financial pressures

Accident Injury Solicitors, a Bolton-based personal injury firm with 16 years in business, has gone into liquidation. 

Accident Injury Solicitors quietly closed its doors last week, citing severe financial strain driven by regulatory reforms and a challenging post-pandemic economy.

The firm, which recently rebranded as Accident Injury Advisory Ltd, attributed its financial difficulties to recent changes in personal injury law, particularly the “whiplash reforms,” which reduced claim volumes and client demand.  

A spokesperson for Accident Injury Solicitors noted, “The significant downturn in revenue and challenging post-pandemic landscape made it increasingly difficult to sustain operations.” The firm acknowledged the potential impact on creditors who had supported it over the years.  

A victim of sector-wide challenges, or hubris? 

Accident Injury Solicitors is among a cluster of struggling personal injury firms who have gone under this year, often with thousands of ongoing claims. This includes McDermott Smith, Pure Legal, and SSB Group.  

But this trend is not necessarily indicative of sector-wide challenges. 

“It’s important to remember that it is inevitable in any sector that you will face defaults and non-performing firms,” commented Louisa Klouda, CEO of litigation funder Fenchurch Legal, which recently took enforcement action against McDermott Smith. 

Speaking to the Law Gazette, Klouda asserted that the claims sector remains attractive to investors, but requires robust measuring practices and thorough due diligence: “[The recent collapse of personal injury firms] highlights the importance of having strong security measures and thorough due diligence in place to ensure enforcement procedures and asset recoverability minimise any potential credit loss.” 

She highlighted the risks of firms pursuing emerging claim types, such as mis-sold car finance, without established legal frameworks, which could further destabilise the industry. 

“Some firms are already claiming to have £100m worth of claims ready for funding,” she noted, “but from a funder’s perspective, it’s crucial to approach these situations with caution.” 

SRA emphasises the importance of transparency

The Solicitors Regulation Authority (SRA) has outlined strict guidelines for firms undergoing closure, stressing the need to inform clients, the SRA, and insurers promptly to minimise disruption. A spokesperson for Accident Injury Solicitors stated: “The firm acknowledges the hardship this outcome may pose for its creditors, who have supported Accident Injury Solicitors over many years.” 

“Accident Injury Solicitors Ltd remains committed to working with creditors and stakeholders to provide transparent communication throughout the liquidation process.” 

Image: © Joe Clemson via Canva

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk