O.K., first the caveats and disclaimers:
I know that law firms are not accounting firms and that law firms are even more transaction driven than accounting firms. No transactions = no work. Secondly, a lot of the 'sky is falling' stuff comes from the UK, home of one of the deeper recessions currently underway. Thirdly, and a combination of the two above, a lot of the firms in trouble are related to The City, London's financial sector hub.
Having said that, the news in the Daily Mail was chilling. A Top 200 law firm preparing to 'go into administration.' (A sort of Chapter 11 filing.) With typical British stiff upper lip, a partner is quoted as saying 'the firm is having some difficulties.'
The rot goes deeper too. Clifford Chance, a firm with offices in New York and D.C. has laid off partners and is reviewing all 30 of its global offices for viability. These are big guys - In New York they boast of being able to house 500 lawyers in their 14 floors of midtown real estate. Allen & Overy, another Top 5 London firm, has frozen rates and cut support staff by 10%.
Of course, this might all create work for the insolverncy practices of accounting firms!
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