Shutting Down Was Just The Beginning For This Midsize Firm — Now It’s Time For Bankruptcy

Above the Law

by Staci Zaretsky

February 23, 2026

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A midsize law firm, McGlinchey Stafford, which had been operational for over 50 years, rapidly transitioned from announcing its shutdown to filing for Chapter 7 bankruptcy just six weeks later. This move signals a complete liquidation of assets to settle debts, with the firm estimating between $10 million and $50 million in liabilities and up to 999 creditors. The abrupt shift highlights the unexpected financial strain the firm faced while winding down operations, particularly due to unpaid long-term lease obligations for office spaces across the country. The decision to file for bankruptcy came after internal challenges, including slow collections, high overhead costs, and significant departures of key attorneys. These factors contributed to a rapid decline in the firm’s stability. Despite initial plans to explore other strategic alternatives when it announced its closure, it became clear that financial obligations could not be met without liquidation. The collapse of McGlinchey Stafford serves as a cautionary tale for law firms navigating similar challenges, emphasizing the risks of maintaining a national footprint with high operational costs and the potential consequences of failing to address internal conflicts and cash flow issues promptly. The firm’s downfall also underscores the importance of careful financial management and contingency planning in legal practice. The departure of top attorneys, often referred to as “rainmakers,” significantly impacted the firm’s ability to retain clients and revenue streams. Additionally, competition from larger firms poaching chunks of the firm’s talent further exacerbated its struggles. Once a prominent name in Louisiana with 160 attorneys across 18 offices, McGlinchey Stafford now faces liquidation under court-appointed oversight. This story is particularly relevant for legal professionals interested in understanding how financial instability and leadership decisions can lead to rapid organizational collapse. The firm’s trajectory from shutdown to bankruptcy within six weeks illustrates the high stakes of

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Originally published on Above the Law on 2/23/2026