PM Law Closes Overnight: Staff Ordered to Vacate Immediately

The unexpected announcement of the closure of PM Law Limited has left many employees and clients in a state of shock. Staff members found out about the closure when they attempted to log in to work or arrived at their offices, only to be informed that the business had ceased operations immediately.

Abrupt Termination of Employment

Numerous employees arrived at locations in Yorkshire, Cumbria, and Berkshire, only to be told that they were terminated without notice. One employee, expressing their distress, said, “All staff were made unemployed without warning and instructed to collect our personal belongings and leave the building.” This abrupt cessation has been deeply unsettling for those affected.

Communication Breakdown

According to a branch manager, staff were instructed on Sunday to place a sign on the office door indicating that the firm was closing due to regulatory issues. Attempts to notify staff before Monday morning were challenging, resulting in confusion.

Many employees felt particularly helpless as they could not reach their clients. “The systems with all contact details were shut down, so there was nothing we could do,” one employee stated. The closure has left client files unattended in the offices, compounding the distress.

Structure of PM Law Limited

PM Law’s operational structure involved bringing various independent firms under one umbrella. While these firms may have once thrived in their local communities, they are now suffering due to the group’s collapse.

• Similarities can be drawn with other firms like Metamorph and Axiom Ince.
• Former employees have expressed their frustration on social media, noting their innocent affiliation with PM Law.

Regulatory Response

The Solicitors Regulation Authority (SRA) noted that PM Law did not close in an expected manner and plans to contact the partners for clarification. Despite the firm facing operational shutdown, the SRA has stated it will not intervene unless client interests are in serious jeopardy.

A spokesperson for the SRA remarked, “If we were to intervene, it would only be because client interests were at serious risk.” They emphasized that contacting clients is the firm’s responsibility, despite the operational disruptions.

Financial Implications

Financial accounts reveal that as of October 31, 2024, PM Law owed creditors £3.1 million. The associated entity, Proddow Mackay Solicitors LLP, owed £1.4 million to HM Revenue & Customs.

Additional liabilities from firms acquired over the years could still be outstanding. Notably:

• John M Lewis & Co Limited reported a £66,000 debt due to PM Law Limited for a loan.
• PM Law also owed Linkfield Claims Services Limited £67,500.

Though there is no indication of misappropriated funds, the SRA is likely to take precautions following criticisms from prior collapses.

Community Support

In the wake of the closure, the legal profession has come together to support those affected. Job openings and encouraging messages are circulating, bringing some positivity amidst a troubling situation.

The developments at PM Law highlight a complex interplay of corporate structures, regulatory responsibilities, and individual livelihoods. As the situation unfolds, the focus will remain on ensuring client interests will be preserved during this challenging time.