The founder of one of the London stock market’s few listed law firms has launched a bid to oust a trio of board members after a disastrous fall in its valuation.
Sky News has learnt that Ian Rosenblatt, who is the single-largest shareholder in RBG Holdings, has hired restructuring experts at Teneo to advise on options to strengthen the company’s finances and rebuild its reputation.
Sources said that both Mr Rosenblatt and Teneo had written to RBG’s board on Monday, with the law firm’s founder demanding the immediate resignation of Jon Divers, its chief executive, and two of its non-executive directors.
One insider said the company’s recent financial performance had led Mr Rosenblatt to seek the appointment of an experienced professional services turnaround team in their place.
The prospective replacements are understood to be Jonathan Fox, a former managing partner of accountancy firm Saffery Champness, who would be installed as RBG’s chairman; Adil Taha, a former banker and private equity executive who has worked in professional services businesses such as Gunnercooke and Kingsley Wood.
Mr Taha would be installed as RBG’s chief executive, while Jonathan Watmough, a former City law firm managing partner, would join the board as a non-executive director.
RBG is understood to have been given a deadline of the end of Monday to respond to Mr Rosenblatt’s ultimatum.
Unless it does, he is thought to be planning to requisition an extraordinary shareholder meeting, echoing a threat he made in a letter to its board last month.
Mr Rosenblatt owns just over 20% of the company’s stock, which on Monday was worth less than £500,000.
Its shares have crashed by over 90% during the last year.
Interpath Advisory is said to be advising RBG on its refinancing options.
RBG, which also owns Memery Crystal, another legal practice, lost nearly £3m during the first half of this year.
Mr Rosenblatt took his eponymous firm public in 2018, raising £43m at a price of 95p-a-share.
When contacted by Sky News, Mr Rosenblatt declined to comment, while RBG has been contacted for comment.