Personal injury claims firm The Accident Group has gone into administration, leaving 2500 employees redundant, according to the BBC.
According to the BBC TAG owner Amulet Group said its subsidiary ceased trading because it could not sustain its "continual battles with the insurance industry" and after "the sudden failure of a banking partner to support the company".
Legal expenses firm, Abbey Legal Protection's managing director Chris Ward said: "The collapse of TAG today demonstrates that the race by unregulated Claims Companies to make their fortunes out of massive TV advertising and commission driven sales teams funded through questionable business models, at the ultimate expense of insurers is not the way to provide proper access to justice."
Employees of the firm have been contacting the BBC to say they have lost their jobs and some staff have said they have not received this month's salary.
A source in the company told the BBC that workers received text messages on their mobile phones, first asking them to "check your e-mail for salary news" and then warning them that "unfortunately salary is not paid".
Sources have also suggested that TAG staff have been seen looting the premises of its offices on King Street, Manchester.
A BBC reporter outside the firm's Manchester head office said staff were being prevented by security from leaving the building with their belongings.
More news to follow.
