North-west firm Taylor Legal has ceased trading after failing to secure professional indemnity insurance.
East Midlands firm Burton & Burton confirmed it has bought almost 3,000 live files from the firm, which went into administration last week.
The acquisition includes around 100 personal injury files and 2,700 payment protection insurance cases.
David Wilson, from DFW Associates, was appointed as administrator after Taylor Legal was unable to secure the PII. It has been reported that six people will lose their jobs as a result of the closure.
In total, 219 firms are confirmed to have missed out on securing indemnity insurance by the renewal deadline at the start of this month. Thirty have since secured PII.
Firms receive 90 days further cover from their old insurer while they try to obtain a new policy. Those that cannot find cover must close at the end of that 90 days.
A firm may continue to practise normally for the first 30 days while it attempts to obtain a qualifying insurance policy, but after that may only work on existing instructions.
Already this month London firms Harris Cartier and Manches have been sold off after entering administration, with more likely to follow in the coming weeks.