Silly Rabbit. Remember this scathing piece about layoffs at white-shoe firms from 2013? While it was only two years ago, there has not been much in the news recently about large firm layoffs. Until now.
Butler & Hosch, “a national law firm specializing in the legal needs of the mortgage banking industry” (i.e. foreclosure) just collapsed under the weight of its own unsustainable expansion. The firm had around 700 employees, including attorneys, and physical offices in 9 states. The firm had been in expansion mode, absorbing the Atlanta-based firm of Morris Schmidt & Wittstadt earlier this year.
Then on May 14th, CEO Bob Hosch send a firm-wide email saying that the firm
“grew too fast and could not merge processes from the acquired entities quickly enough to meet our economic forecasts, which resulted in short-term cash crunches and our ability to attract new capital … (Butler & Hosch) cannot continue to function[.]”
Right now it’s unclear whether the firm will declare bankruptcy, but its financial operations have been turned over to an independent fiduciary. Also, according to news reports, the firm’s attorneys failed to show up at several court hearings after the announcement. All of this sounds like the firm grew too big too fast, and pulled the rug out from under its attorneys and clients at the last possible moment.
Featured image: “young business man leaned against glass wall in crisis moment” from Shutterstock.