Tom MacLennan and Iain Fraser, partners with FRP Advisory, have been appointed as joint administrators.

Pagan Osborne had attempted in recent times to rebalance the business and move away from domestic conveyancing but it would appear that declining margins and intense competition proved too much for the Fife firm.

Around 70 jobs are expected to be lost, with Thorntons stepping in to save around 50, including 10 partners.

Craig Nicol, joint managing partner of Thorntons, said the firm had been “highly respected”.

He added: “Our priority will be to provide a seamless transition for clients and to preserve the maximum number of jobs. We will be in contact with all Pagan Osborne clients imminently and I would seek to reassure them that they will receive continuity of service from the newly-enlarged Thorntons team for their legal or property matters in the coming days and weeks.”tm

A minimum 45 day redundancy consultation period will start this week, with Pagan Osborne’s offices in Edinburgh, Cupar and St Andrews set to close.

All staff in those offices will be advised that they are at risk of redundancy pending a review of employment requirements.

The Pagan Osborne office in Anstruther will be retained and rebranded as Thorntons, although some redundancies will be required there as well.