An investigation has been launched into the sudden closure of a law firm.
Butterworths, which has branches in Cockermouth, Carlisle, Penrith, Kendal and Hensingham closed on Monday, with posters put up saying: “Due to regulatory matters, the PM Group businesses carried out in within this building can no longer trade.”
It is part of the Sheffield-based PM Law Group, which was also uncontactable.
The Solicitors Regulation Authority, which monitors law firms to make sure they are complying with the rules, said it was alerted to the closure on Monday and launched an immediate investigation.
It added: “We understand that this is concerning and distressing news for all involved, not least those that had ongoing matters with the firm.
“We contacted the firm to make sure client interests are protected properly. As a result of our initial investigation, we took the decision yesterday, Wednesday February 4 to intervene into the group of firms.
“An intervention means we take possession of all documents and papers held by the firm, take possession of all money held by the firm – including clients’ money – and, where a firm is still trading, close it with immediate effect.”
Sarah Rapson, chief executive of the SRA, said: “We have acted quickly and decisively to protect the interests of clients.
“The sudden announcement from PM Law on Monday that they had closed is troubling news and I fully sympathise with the clients of the firm.
“Many of those involved are buying and selling a house or dealing with personal injury claims. These matters can be stressful enough without the added complication of your solicitor’s firm closing during the process.
“While we cannot disclose information about an on-going investigation, we are working quickly to gather all the relevant information and provide answers to those that have raised important questions about their on-going matters with the firm.
“Finally, we also recognise that this is a difficult time for the employees of the firm who have sadly lost their jobs this week.”
PM Group has 11 firms across the country and also trades under a further 30 names.
It has appointed an intervention agent who will contact clients with ongoing matters, prioritising those with the most urgent or imminent issues.
