Posted Apr 23, 2014 10:59 am CDT
Citing a decline in Chapter 11 filings, a 25-attorney Los Angeles-based bankruptcy firm has announced that it will close its doors May 1.
Founded in 1948, Stutman Treister & Glatt also has offices in New York and Utah, Reuters reports.
In a written statement provided to the Los Angeles Daily Journal (sub. req.), the firm says Stutman Treister “has determined that it is in the best interest of our clients, creditors, shareholders and employees that we cease the practice of law.”
A larger bankruptcy firm, Pachulski Stang Ziehl & Jones, will hire three of the Stutman partners, including Jeffrey Davidson. He told Reuters on Tuesday that a number of companies are taking out bank loans, due to low interest rates, rather than filing for bankruptcy.
New Chapter 11 cases plummeted by more than a third between 2010 and 2013, from from 15,251 to 9,811 filings, the Reuters article says.