Decision comes after concerns raised client funds could not be accounted for
Law firm Ross Harper has ceased trading after more than 50 years in practice.
The firm had been at the centre of a probe into its finances and allegations clients' funds had gone missing or could not be accounted for in its books.
Accountancy firm Henderson Loggie was appointed to investigate the firm last month.
Henderson Loggie's Ian Mitchell, who was appointed as a “judicial factor” to investigate the firm's finances, issued a statement yesterday saying the firm would cease trading and the business would close.
He said: "Some staff have already left due to the uncertainty and sadly those remaining will also now lose their jobs, the majority immediately. Normal redundancy terms will apply.
"Since my appointment we have taken all reasonable steps to continue trading but it became increasingly clear that under the extremely challenging financial circumstances which we found on our arrival it was going to be very difficult.
"My team and I would like to pay tribute to the co-operation we have received from staff. Without their support and help, a very difficult task would have been impossible."
The Law Society of Scotland had initially flagged up concerns after a routine inspection of Ross Harper's books.
A Court of Session order was also made in April ordering the firm to pay £50,000 in outstanding rent for its office in Paisley.
It is estimated a total of 40 jobs will be lost when the firm is finally wound up.
Four Ross Harper partners - Paul McHolland, Jim Price, Alan Miller and Joseph Mullen – had their practising certificates withdrawn when the investigation was launched.
Lorna Jack, chief executive of the Law Society of Scotland, said: “Ross Harper has been operating for some 50 years and is one of Scotland’s best-known legal firms.
“The decision by the judicial factor to cease the firm’s trading marks the end of an era within the Scottish legal profession.
“It is, however, an important part of our role to protect client interests and seek the appointment of a judicial factor whenever we have concerns that client money is missing or, because the accounting records are so poor, we cannot tell if client funds are missing.
“This was why we applied to the Court of Session for the appointment of a factor in the case of Ross Harper.”
Ross Harper was established in 1961 and at its peak had 12 offices throughout Scotland.