Ruden McClosky Files for Bankruptcy; Greenspoon Marder Seeks Assets, Plans to Hire About 50 Lawyers
The South Florida law firm Ruden McClosky has filed for Chapter 11 bankruptcy protection after lawyer defections, staff layoffs, office closings and an across-the-board pay cut.
Law firm leaders had maintained a positive attitude as problems mounted last year. Managing partner Michael Krul had said last November that the firm was “stronger and leaner” and “poised to grow.” Now Ruden McClosky is listing at least $10 million in total debt in its bankruptcy filing. The Daily Business Review (sub. req.), South Florida Business Journal and the Miami Herald have stories.
Fort Lauderdale-based law firm Greenspoon Marder hopes to purchase Ruden McClosky’s assets and plans to acquire about 50 of the firm’s lawyers. All Ruden McClosky lawyers and staffers, except for those in the Tampa office, will be making the move, according to the Daily Business Review.
Greenspoon Marder managing partner Gerry Greenspoon told the South Florida Business Journal that his firm would bid $7.6 million for Ruden’s accounts receivable and work product. “You don’t hear about this very often, professional firms being sold through bankruptcy, but it has happened,” Greenspoon said. “It’s a way for a law firm to terminate operations and move on under another firm.”
Updated at 11 a.m. to include information from the Daily Business Review.
