The firm had been hoping that European partners would commit to raising £14m to recapitalise the business, in order to secure financial backing from Asia, however it was announced today that the partnership could not raise sufficient capital.

Around 60% of KWM’s Europe, UK and Middle East (EUME) partners would have been required to commit to providing the capital in order for the China bailout to go ahead. They also had to agree to stay with the firm for 12 months.