Law Firms Closing at Over Triple the Rate of Pubs

Recent figures from the Solicitors Regulation Authority (SRA) reveal a worrying trend for the legal sector in England and Wales: solicitors’ firms are closing at 3.6 times the rate of pubs. While pub closures often dominate the news, the closure of law firms has far-reaching consequences for access to justice and the broader legal market.

In August 2025, there was a net loss of 33 firms – the difference between new firms opening and those closing due to full closure, mergers, or other reasons. With a net reduction of 220 over  the past year, comprising:

• Sole practitioners: 102
• Partnerships: 81
• Incorporated companies: 14
• Limited liability partnerships: 22
• Other: 1

Over the last five years, the total number of firms has dropped from 10,126 to 9,069, a 10.44% reduction.

The wider impact

The SRA figures measure firms, not individual offices so with many firms operating from multiple offices, the true scale of closures is likely higher. With estimates suggesting that approximately 1,600 solicitors’ offices have closed in the last five years, ,this can only compound access challenges for clients and increasing pressure on surviving firms.

These closures are driven by a combination of factors: rising operational costs, regulatory pressures, and reduced profitability. Small and mid-sized practices, in particular, face significant challenges in sustaining their operations.

The Recovery First model

Recovery First supports law firms facing financial difficulties by providing structured assistance in planning an orderly closure or the process of restructuring.

Working closely with professional service providers, including insolvency practitioners, Recovery First discreetly facilitates the transfer of a firm’s cases to multiple solicitors within its trusted panel. This model not only protects client interests and ensures full compliance with SRA regulations but also maximises the value of work in progress (WIP) and limits risk for the purchasing panel firms.

Importantly, the solution offered by Recovery First is flexible. It does not require the transfer of an entire caseload; firms can choose to transfer specific case types or selected groups of files. This tailored approach allows for a practical and proportionate response to financial or operational difficulties, helping firms navigate complex transitions while maintaining regulatory integrity.

How can Recovery First assist?

Dealing with financial trouble can be a complex issue for law firms to navigate. Facing these issues as early as possible and seeking the right help is key to ensuring the best solution is achieved.

Whichever route you choose to take for your firm, Recovery First will ensure the most positive and profitable outcome is achieved, whilst protecting clients’ best interests to help avoid  SRA intervention..

In the worst-case scenario, you may be required to close your firm due to insolvency. Recovery First will work with you and your insolvency practitioner, to minimise the impact on your clients and maximise the recovery of costs and thus the return for creditors.

We guarantee complete confidentiality for all clients. To learn more about how Recovery First can assist, contact our team using the details below. We will be happy to discuss the process with you.