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, indicating the firm is liquidating its remaining assets to satisfy creditors. According to court documents, McGlinchey has between 200 and 999 creditors, with both assets and liabilities estimated somewhere between $10 million and $50 million. This closure is far from a tidy wrap-up.

Several attorneys, who spoke on condition of anonymity, revealed that the firm did not initially plan to file for bankruptcy when it announced its closure. However, as the firm began winding down operations, it became evident that there wasn’t enough money to cover the firm’s numerous long-term lease obligations in office buildings across the country.

McGlinchey Stafford's troubles did not appear out of the blue. The firm had been struggling with lagging collections, internal friction, and hefty overhead costs. Key players left, and practice groups later migrated in chunks as larger firms scooped them up amid the firm’s collapse. At its peak, McGlinchey Stafford boasted about 160 attorneys across 18 offices nationwide, making it one of Louisiana’s most prominent firms.

Now, a court-appointed trustee will oversee the liquidation of what remains of the once-thriving firm. This development serves as a stark reminder to other firm leaders: when a firm’s momentum turns negative, the situation can deteriorate rapidly. The transition from considering "strategic alternatives" to filing for Chapter 7 can happen in as little as six weeks.

As McGlinchey Stafford prepares for its final shutdown, the legal community watches closely, learning from this cautionary tale of rapid decline and unexpected turns in the business of law.