Leading City Law Firm RBG Holdings Collapses Amid Losses and Racism Scandal
Ian Rosenblatt, founder of RGB Holdings and a prominent Labour Party donor, has seen his law firm collapse into administration after accumulating heavy losses and facing a racism scandal.
RGB Holdings, founded by Rosenblatt in 1989, became the fourth UK law firm to go public in 2018. Since then, Rosenblatt has reaped millions in payouts from the company. However, the firm's share price has plummeted by over 90% since 2021.
Expansion attempts have contributed to RGB Holdings' losses, while a high-profile racism scandal further damaged investor confidence. Former CEO Nicola Foulston was dismissed in January 2023 after she allegedly used a racist slur at a business dinner. Rosenblatt was exonerated of racism by an employment tribunal last year.
The firm's collapse follows an exodus of senior lawyers from its subsidiaries, Rosenblatt and Memery Crystal. Rosenblatt is reportedly seeking to continue practicing law through his new firm, Rosenblatt Law.
Despite the setbacks, Rosenblatt remains RGB Holdings' largest shareholder with a 20.52% stake. Other major shareholders include abrdn and Close Brothers.
Rosenblatt has faced scrutiny for his donations to the Labour Party, including a £16,000 donation that the party was forced to return after revelations about his firm's work with a sanctioned Russian bank.