City firm Hextalls traces its roots back to 1899 and is a key adviser to failed insurance giant AIG. However, it has lost a number of partners in recent months, including a liability team to Kennedys and it has been facing cash flow difficulties and problems with historic debt. It is the first City law firm to have reached the brink and it is now in a desperate battle to stave off its own collapse.

The Lawyer reported that Hextalls partners have spent the Easter weekend locked in discussions with Begbies Traynor administrator David Hudson to identify a way out of ­pre-packed administration. It is understood that the firm will continue to practise, with a number of partners agreeing a buyout through the administration – an unusual move for the legal sector.

Until recently the collapse of a sizeable law firm was almost unheard of. However, January saw the demise of Leeds-based Fox Hayes and now Hextalls have come pretty close. So whilst most firms that fall on hard times are normally consumed by bigger rivals, there may be a more bleak end for some.