Well, that escalated quickly. Six weeks after announcing it would shut down after more than 50 years in business, McGlinchey Stafford has filed for bankruptcy.
This isn’t a reorganization play. It’s a Chapter 7 filing, meaning the firm is liquidating its remaining assets to satisfy creditors. Court documents show McGlinchey has between 200 and 999 creditors, with both assets and liabilities estimated somewhere between $10 million and $50 million. In other words, this is not a tidy wrap-up. The Times-Picayune has additional information:
Several attorneys familiar with the situation who were not authorized to comment publicly on the case said the firm did not initially plan to file for bankruptcy when it announced it was closing. As it began winding down operations, however, it became evident that there wasn’t enough money to satisfy the firm’s more than 15 long-term lease obligations in office buildings around the country.
As we’ve previously reported, McGlinchey’s troubles didn’t come out of nowhere. A mix of lagging collections, internal friction, and hefty overhead weren’t helping the firm. Rainmakers left. By the time the dissolution vote happened, the exit doors were already swinging. Practice groups later migrated in chunks as Biglaw firms swooped in amid the firm’s collapse.
At its height, McGlinchey had roughly 160 attorneys in 18 offices nationwide and was one of Louisiana’s most prominent firms. Now, a court-appointed trustee will liquidate what remains.
For firm leaders watching from afar, this is a cautionary tale: national footprint, expensive buildouts, slowing collections, key departures. When momentum turns negative, it turns fast — and as we now know, the difference between “strategic alternatives” and Chapter 7 can be about six weeks.
As McGlinchey Stafford prepares for shutdown, the Louisiana firm files for bankruptcy [Times-Picayune]
Earlier: Midsize Firm Kicks Off The New Year By Announcing Plans To Close Its Doors
Staci Zaretsky is the managing editor of Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
The post Shutting Down Was Just The Beginning For This Midsize Firm — Now It’s Time For Bankruptcy appeared first on Above the Law.