Struggling Firm Will Close Its Doors By Year's End, Leave All Lawyers Jobless

Which firm will be shuttering all of its offices for good?

Sometimes when firms conduct layoffs, it’s seen as being part of the regular course of business. No one is in fear of losing their job; the layoffs were just a way to alleviate immediate cash crunches and free up funds for future ventures. Other times when firms conduct layoffs, it’s seen as a harbinger of doom. Lawyers are so worried about receiving a pink slip that they flee the firm before it can happen.

The second example seems to be exactly what’s happened at a once prominent law firm. Last month, the firm publicly announced that it had laid off a handful of attorneys, but according to sources, behind closed doors, the number of layoffs was much higher, and it prompted lawyers to begin leaving in droves. The firm in question is Burleson LLP.

Here’s what our sources have said about the firm’s impending doom:

* Almost all key partners in Houston have left. In fact, the Houston office is almost empty. The Midland office has closed. Denver is struggling, and San Antonio is a shell of its former self. The firm is struggling to survive.

* Burleson has major problems. In short, the firm is struggling to stay afloat.

* Word is that Rick Burleson is trying to get someone to buy the firm. Although he has “partners,” he owns the vast majority of the firm.

Given that the firm was having so many difficulties, managing partner Richard Burleson announced last night that the firm would be shuttering its doors by the end of the year. Even though merger activity is at an all-time high, perhaps Burleson’s financials were so poor that it wasn’t able to find a suitor to swoop in and rescue it from certain death.

In an interview with Law360 (sub. req.) last night, Rick Burleson said that while the firm was still making $20 million annually, it just wasn’t enough to maintain its $40 million infrastructure. Here’s some additional information on the decision to close the firm:

Burleson and other firm managers made the decision last week to shutter their offices after “going through a lot of soul searching” and concluding that it was the best way to make sure they could meet their obligations to clients before completely running out of resources, he said.

“We will remain busy working for our clients through the end of the year, and we’re meeting with all of our clients to make sure they are taken care of,” he said.

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At one time, Burleson LLP employed more than 140 attorneys, but after some lateral raids and partner departures, there are only about 60 attorneys left at the firm, all of whom will likely be jobless by the end of the year. “We’re paying everyone through the end of the year, and everyone has committed to work through the end of the year. But everyone is going to do what’s in their personal best interests and their clients’, and I respect that,” Burleson said of his soon-to-be unemployed colleagues.

This is going to be a somber Thanksgiving for those affected by the firm’s closure. We wish the lawyers and legal professionals at Burleson LLP the best of luck while they seek new job opportunities in the legal industry and beyond. Try to have a happy holiday.

If your firm or organization is closing its doors or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you!

Burleson To Close Entire Firm At The End Of The Year [Law360 (sub. req.)]

Earlier: Nationwide Layoff Watch: Attorney Jobs Slashed Due To Dismal Market

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