Here’s an example of how dramatically situations can change for even well-established service providers connected with auto finance.

On Dec. 15, McGlinchey Stafford announced the hire of four associates who previously clerked or worked at the law firm across three of its offices.

Then last Monday, “after assessing several strategic alternatives,” McGlinchey’s equity members voted to begin an orderly wind-down of operations.

According to a news release, the firm said this decision was based on a combination of market factors and internal circumstances. The firm indicated outside consultants and counsel have been retained to guide the firm through all wind-down activities, including transitioning client service and supporting employees.

“There was no single triggering event or one definitive action that brought us to this point,” the firm said in the news release. “This is not because of any specific attorney’s departure, or any individual financial decision or leadership action that led us to this point. This is the result of a combination of market factors, such as lagging collections, compounded with various internal factors over several years.”

Among its relationships in the auto-finance space, McGlinchey Stafford partner Mark Edelman is on the board of directors for the National Automotive Finance Association.

The firm added that several McGlinchey attorneys have recently announced plans to join other firms. McGlinchey’s 160 attorneys were based in 18 offices across 12 states and Washington, D.C.

“Our team comprises exceptional legal minds and some of the most skilled legal talent in the market, and while we are sad to bid them farewell, we know they will all thrive wherever they choose to land. McGlinchey will continue to provide seamless, cohesive service and client transition support throughout this process. Leadership is committed to working together, under the guidance of our consultants and counsel, to ensure that our people have a smooth transition and that all matters are handled with care.”

Managing member Michael Ferachi shared these perspectives in the news release.

“As we begin McGlinchey’s 52nd year of operation, my colleagues and I are saddened to announce its final chapter,” Ferachi said. “McGlinchey’s attorneys and legal professionals have focused for 51 years on solving our clients’ legal problems, and that will remain our focus as we wind down our business.

“We are committed to comporting ourselves with dignity and grace during this process. I am immensely proud of the culture we have built, the excellent service we have offered, and the team that we have assembled. I truly believe no one does it better,” he went on to say.