The UK’s only listed accountancy firm RSM Tenon went under today after Lloyds Bank refused to let it change the conditions on its £80 million debt pile.
Adminstrators from Deloitte, called in by the board, then immediately sold the business to rival firm Baker Tilly which had considered a takeover bid earlier this month.
Lloyds is unlikely to get all its money back from the sale. Tenon, which was the UK’s seventh-largest accountant, said its 2500 employees should be safe.
Tenon expanded rapidly in recent years but was hit badly when the level of corporate and personal financial failures started to fall two years ago. It plunged into loss last year.
Its financial advisory business was also hit with a £700,000 fine in 2010 for mis-selling complex financial instruments created by Lehman Brothers.
Tenon shares were suspended at 1.13p today. It had already warned that any bid from Baker Tilly would be at minimal value.
