Exclusive: Wenham Major sold to Bentley Jennison

Sale goes ahead after 'financial irregularities' cripple Wenham Major

Gavin Hinks, Accountancy Age 17 May 2008

The core practice of Wenham Major, the crisis wracked Top 50 firm that entered administration on Wednesday, has been sold to RSM Bentley Jennison for an undisclosed sum.

The deal was signed on Friday evening following a week of talks. Jennison takes over the central audit and accounting business as well as the tax compliance practice.

Tony Stockdale, Jennison's managing partner, said: 'The core business is a strong business. Whatever happened was a matter for the other parts of the business.'

He said that work would begin this week to reassure clients and move the Wenham Major staff into new premises over the next 10 days. Stockdale said the acquisition was made using the firm's existing reserves. The audit and accounting practice turnsover around £2m annually.

Wenham Major was taken over by administrators from Vantis on Wednesday, little more than a week after an announcement that 'financial irregularities' had been found at the Wenham Major Private Client subsidiary by joint owner Ammar Azam. The statement also said that legal action was being planned against John Joyce, fellow joint owner of the firm and founder of the private client practice.

The irregularities are thought by administrators to have been uncovered six weeks ago. It is believed a list of wealthy, some famous, clients are creditors of the firm.

Sources close to the firm say that Private Client has effectively ceased to trade and its seven staff are pursuing other employment opportunities.

Joyce is understood to be in hospital and unavailable for comment. Azam is understood to be out of the country visiting a Wenham Major business in Dubai which is not involved in the administration. He is expected back in the country shortly.

Nick O'Reilly, the Vantis administrator, said: 'We have been concentrating on saving employees, looking after the interests of the creditors and minimising disruption to the clients. Stage two will now start to work out what happened.'

Staff at the business were shocked to receive a letter terminating their employment on Monday. However, both they and the Vantis administrators continued work as normal.

Wenham Major caught the attention of the accounting world after growing to a turnover of £22.5m and the number 23 spot in the Accountancy Age Top 50 within the space of just a couple of years.

Wenham Major was founded in 1867 and was the subject of an MBO involving Joyce and Azam in 2005. As well as London and Birmingham the firm's website said Wenham Major offices are sited in New York, Dubai, Shanghai, New Delhi and Geneva.

In all six entities relating to Wenham Major entered administration with Vantis: Wenham Major Global Capital Parnters LLP and Cornwall Street Property LLP, Wenham Major Ltd (the core audit accounting and tax compliance practice), Wenham Major Private Client and two non trading companies Abbey Specialised Solutions and Wenham Major Business Services. A further two companies - listed at the same Cornwall Street address in Birmingham - Wenham Major Wealth Management and Wenham Major Global Trusted Advisors have not been involved in the administration.

Vantis came in first as an adviser and was then appointed administrator following an application by Wenham Major's bankers HBOS.