The Life Repair Group, a Preston-based no win, no fee company, has called in administrators leaving its 200 employees facing redundancy.
Begbies Traynor partners Andrew Dick, Paul Stanley and Mark Fry were called in to run the administration process. They said they would work closely with the group's directors and potential funders to explore the possibility of a rescue package for the company.
The Life Repair Group was formerly known as The Compensation Group.
An initial task will be to arrange meetings with the company's employees to explain the redundancies.
Begbies Traynor partner, Andrew Dick, said: "It is a terrible task to make 200 people redundant and it will probably be a dreadful shock to them. This has been a very successful, fast-growing business which last year showed profits of £800k.
"However, this sector has recently experienced the collapse of two major players - Claims Direct and The Accident Group - and there appears to be a change of attitude from funders," he said.
"Last month the Group's funding line ceased and the directors had been in talks with other funders to secure the on-going viability of the business. Unfortunately those talks have failed to deliver the cash which was necessary to pay this month's wage bill."
