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Ross Harper's managing partner Cameron Fyfe has also been toppled from the top job. It is understoood he will concentrate on fee-earning.
The firm has reportedly closed down its Uddingston and Pollok offices and offered redundancy to five lawyers and five administrative workers.
The operations in Rutherglen and Easterhouse are also being wound down and most of the staff in the firm's East Kilbride office have been moved over to Hamilton.
No-one has yet been selected to replace Fyfe as managing partner. A spokesman for the firm says that the new fixed fees arrangements, together with the general drop in criminal prosecutions, has forced the firm to "re-examine it structures".
Fixed fees of £250 for district court cases and £500 for sheriff court cases replaced hourly billing in 1998 as part of the Government's drive to cut the cost of legal aid