Clifford Chance is to close its Berlin office at the end of the financial year due to 'market conditions' in the German capital.

The ten-partner office, which Clifford Chance gained through its merger with German firm Pünder Volhard Weber & Axster in 2000, will cease to operate at the end of April next year. So far, only two Berlin-based partners have been found new homes within the UK giant's remaining German offices in Frankfurt, Düsseldorf and Munich.


Berlin office head and corporate partner Jörg Kraffel will move to Düsseldorf, while senior property partner Wolfgang Usinger will join Frankfurt.


This leaves eight other partners - together with junior lawyers and backroom staff - locked in negotiations with Clifford Chance's management.


A German spokesman for the firm denied any decisions on their futures had been made. He said: 'The [other] partners have to discuss their preferences.'


The managing partner of a rival US firm's German practice said: 'There is little foreign investment in Berlin and the situation is getting worse.' He added that other firms with Berlin offices were probably suffering as well and that Clifford Chance was 'brave' to tackle the problem.