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More RSM Tenon partners decamp to Mazars

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3rd Jun 2013
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RSM Tenon’s East Midlands operation has now lost six partners to rival Mazars, with news that a further three are considering their positions.

Mazars confirmed that East Midlands regional director and head of the RSM Nottingham office, Alistair Wesson, was one of six partners due to switch firms in November.

The other partners include RSM Leicester office managing partner Chris Darlington, plus Julian Clough, Steve English, David Hoose and Bob Johnson. The defections come months after it was revealed that London managing partner Peter Musgrave was leaving the firm.

In a statement RSM Tenon confirmed a “small number” of partners in the East Midlands had resigned and had immediately been placed on gardening leave. The firm maintains that it is still very much committed to the region.

Mazars said it was growing its East Midlands operation with the recruitment of the partners, and told This Is Nottingham it was continuing discussions with three more individuals.

During the autumn the firm will open an office in Leicester, led by Darlington, Johnson and English. The remaining partners will bolster the existing Mazars Nottingham office.

RSM Tenon's financial struggles have continued to feature in market announcements. Despite posting a £2.8m “exceptional profit” following the settlement of a dispute with its insurers, the firm revealed earlier this year that it had yet to agree new banking covenants with its lender.

In February RSM warned: “Whilst to date Lloyds has not agreed to this reset, we remain in positive dialogue with the bank and Lloyds has confirmed that it continues to be supportive of the continuation of the group as a going concern.”

Around the same time the firm confirmed it had shut down Premier Strategies last year, and that the assets and liabilities were not held-for-sale. Premier Strategies is now offering to represent clients over their employee benefit trusts (EBTs) and to settle with HMRC at a cost of 40% of their sheltered cash.

Premier Strategies was originally a tax planning unit within BDO's Nottingham office, which was acquired by Tenon. Premier Strategies included among its directors Andy Raynor, who went on to become chief executive of the fast-growing, listed consolidator that ultimately became RSM Tenon. He left the firm last year following its financial meltdown.

Overall RSM Tenon said it had made “huge progress” in the past 12 months with significant action to reduce costs, control cash and restructure the business. The firm said it was back to a "business as usual" monitoring relationship with the FSA following two years of regulatory supervision.

In early 2012 Tenon announced it would slash employee numbers by 10% and in a statement to the Stock Exchange reported the loss on continuing operations after assessing a goodwill impairment of £60.7m.

In contrast, Mazars' fortunes have been on the up in recent months, with the acquisition of immigration services business Sarah Butler Associates, contract wins in the public sector, and the opening of a new office in the North East.

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