TL;DR     

  • PM Law's unexpected closure has triggered an SRA fraud investigation, with over £1m in suspected missing client funds and hundreds of clients and staff facing uncertainty.

Introduction 

On the 2nd February 2026, the major law firm PM Law closed without warning. This decision has left tens of thousands of clients and many employees in a tumultuous position. This article will examine what led to the firm's sudden closure, and what the current situation looks like.  

Background to the Firm

PM Law is a network of firms trading under a single umbrella brand, including Butterworths Solicitors, Wilsons Solicitors, and Gaines & Wilkinson. It has 24 offices in Yorkshire, Derbyshire, Cumbria, and Berkshire, with its headquarters in Sheffield. 

The firm was formed in 1990 and employed over 600 individuals, specialising in the following practice areas: conveyancing, personal injury, wills and probate, and commercial property. 

Whilst the firm's financial information is limited, as of late 2025, it reported net assets of approximately £3.1 million; however, it is unclear by how much it owed to its creditors.

What led to the closure of PM Law?

The abrupt closure of PM Law has left many unanswered questions, and details about the firm's demise remain sparse. Many employees are none the wiser, with some being told not to turn up to work and others finding out they had lost their jobs through a notice posted in the firm's window. 

The SRA has since launched an investigation into the firm and the individuals connected to it. The executive director of legal and enforcement said they are investigating a potential fraud, including the misappropriation of client money. It was confirmed that at least £1 million in client funds was thought to be missing from PM Law. 

In the meantime, the SRA has appointed Gordons LLP as its intervention agent to take possession of files and money, including clients' funds.

The impact on clients and employees 

The SRA has received more than 50 applications for its compensation fund, with emergency payments underway. 

One client, Amy-Jade Hughes, was in the process of selling her home in Worksop to move to Australia with her partner and children. Whilst the sale was legally completed and the purchase money received, she said PM Law had not paid off the mortgage. This has subsequently left her liable for nearly £100,000 in debt. 

Another client who was purchasing a new-build house through a firm owned by PM Law paid £12,000 before it unexpectedly closed, and he is now unsure of when he will get the money back. 

Many clients have expressed concern about the SRA's discretionary compensation fund, as it could become oversubscribed, leaving clients inadequately compensated. 

In addition to the many clients affected, hundreds of employees are also suffering from the repercussions of the firm's closure. A staff member reported that no redundancy plans had been put in place. One of the firm's parts of PM Law's group, Angela Viney, reported being devastated by the situation that was completely outside of their control.  

What is being done to resolve the situation? 

The SRA have stated that they will prioritise applications to the fund where there is the greatest need, having already made several emergency grants, for example, to allow clients to move house after contracts have already been exchanged. They have also begun processing many of the applications received.  

The CEO of the Law Society, Ian Jeffery, has noted the "importance of the SRA applying the lessons it learned from the Axiom Ince and SSB Group cases in understanding and managing key risks effectively".  

Future Outlook 

There is still a significant amount of uncertainty and unanswered questions regarding PM Law's closure,e and until the SRA's investigation has been completed. Its findings revealed that it will be a waiting game for many clients, employees, and the broader public to see what the future of the firm looks like and whether there is any prospect of it reopening.