Reg Marsh, the managing partner at Will Alsop's practice, has left in the wake of the takeover by SMC Group, writes Vikki Miller.

Marsh, who was parachuted in to head the financial side of the practice after it went into administration in 2004, departed last week after SMC bought it for £1.8m.

Marsh said it was part of the deal that he would leave. He said: "It was part of the sale. I was brought in by [venture capitalists] R Capital and when they sold their shares I was told to go. The new company has its own thoughts on management. I would have stayed on if I had been asked but it seems they want to bring in their own managing partners." He said he was unsure what his plans were for the future.

Will Alsop said although the split had not been acrimonious, Marsh's role had become superfluous. He said: "When we had to restructure after R Capital bought in, we thought it was going to be a positive move to have someone in to run the office and we could get on with the architecture. Although it was not his fault, Reg had a restrictive role because he had to do R Capital's undertaking. It was very divisive."

When Marsh was drafted in to manage the financial side of the practice he said he would expand the business by almost one-third. He had planned to concentrate on key centres of work including Toronto and Shanghai.

When R Capital sold their shares I was told to go

Reg Marsh

But one year later, the practice is still in financial trouble, with a pre-tax loss of £690,000 on earnings of £3.5m.

Venture capitalist R Capital bought 40% of the practice after it went into receivership in October 2004.

BDO Stoy Hayward, the receiver from 2004, is taking legal action against Alsop and two other directors to recover £250,000.