Newburn Law’s offices are in Writer Square. (Burl Rolett/BusinessDen)
A business law firm in Denver is bankrupt after most of its lawyers and clients left.
Newburn Law, which operates out of a Larimer Street office downtown, filed for Chapter 11 bankruptcy protection May 23. It is unusual for local law firms to file bankruptcy.
Attorney Ryan Newburn, the sole owner of Newburn Law, started the firm a dozen years ago to handle one client: iSatori, a supplement company, according to the firm’s website.
Newburn, who did not answer an interview request, was the firm’s only lawyer until 2020. It then grew to include seven other attorneys, all of whom left to start another firm in 2024.
“(Newburn Law) obtained a Small Business Administration loan to market and grow,” it wrote in a recent bankruptcy filing. “The bankruptcy case was prompted by the firm losing its two largest clients, resulting in a 90% reduction in revenue. The firm has begun obtaining new clients and, together with a restructuring of debts, believes it can achieve profitability.”
Newburn Law took in $1 million in gross revenue in 2023 and $1.4 million in 2024 but only $24,000 in the first five months of this year, according to its bankruptcy paperwork.
Meanwhile, the small-business lender Newtek sued in February to recover money it lent the firm in 2023. Newburn Law did not respond to that lawsuit, so a Denver judge awarded Newtek $247,000 on May 23, the same day Newburn Law sought Chapter 11 protection.
Newtek is the second-largest creditor after the SBA, which is owed $281,000. The firm also owes $47,000 to American Express and $24,000 to banks. It has $60,000 in assets.
Newburn Law expects to file a reorganization plan within a few months and repay creditors with disposable income over the next few years. It does not expect pushback to that idea from creditors. The law firm notes that it has not fallen behind on taxes or insurance.
The firm’s bankruptcy lawyer is Aaron Garber at Wadsworth Garber Warner Conrardy.
