Fenton Law, and its back-office collections operation, M&P Collections, have filed for bankruptcy protection and are planning to sell their remaining assets next month, according to court filings.
The companies, based in Louisville, Kentucky, filed for bankruptcy protection earlier this month. Another law firm has stepped up and is interested in purchasing the remaining assets, with an auction scheduled for mid-March, according to a court filing made earlier this month.
Fenton Law is expected to cease operations next month, and since it was M&P’s only client, the collections back-office is expected to close as well, putting 60 employees out of work, according to a court filing.
M&P originally provided back-office support for Morgan Pottinger McGarvey, but was sold to Fenton Law in 2014. Following a period of aggressive expansion, where it added offices in Colorado, Tennessee, Kentucky, Indiana, and New Jersey, Fenton “experienced significant and unanticipated losses” in revenue, which, when combined with earn-out payments owed to the shareholders of the firms it had acquired and the loss of a major customer, left Fenton with no choice but to file for bankruptcy protection.
M&P listed assets of between $100,001 and $500,000 and liabilities between $1,000,001 and $10,000,000.
A copy of the motion seeking approval of an order to sell the remaining assets of both companies can be accessed by clicking here.