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Weil, Gotshal & Manges, the law firm that handled Enron and Lehman Brothers, among other high-profile clients, has moved toward liquidation after nearly a century in business, despite generating more than $2 billion in annual revenue.
A Weil spokesman told FOX Business that the leadership of the firm has recommended an orderly wind-down, with partners expected to vote on the proposal in the coming days.
The proposed closure would end one of the country’s most prominent corporate law firms, which has about 1,200 lawyers worldwide and has handled some of the largest bankruptcies in US history.
The logo of the law firm Weil, Gotshal & Manges LLP is seen outside its office in Washington, DC, on August 31, 2020. (REUTERS/Andrew Kelly/Reuters)
“After a careful review of strategic alternatives, the Firm’s Management Committee has recommended a partnership that the Firm pursues a wind-down order. Partners are expected to choose in the coming days,” said the spokesman. “During the winding process of the coming months, the Company will continue to serve its clients with the dedication and excellence that has been established since its founding and will remain committed to supporting its colleagues.”
JPMorgan Chase Chief Risk Officer Barry Zubrow testifies before the Financial Crisis Inquiry Commission for a hearing on extraordinary government intervention and the recent financial crisis, on Capitol Hill in Washington, September 1, 20 (REUTERS/Jonathan Ernst/Reuters)
Founded in 1931, the New York-based firm operates offices around the world and has played a leading role in some of the country’s most significant corporate restructurings.
The company’s planned wind-down follows a series of high-profile partner departures that have put pressure on the business, Reuters reported.
Weil also explored a potential merger with rival law firm Willkie Farr & Gallagher, but those talks failed to yield an agreement, according to Reuters.
The logo of the law firm Weil, Gotshal & Manges LLP is seen outside its office in Washington, DC, on August 31, 2020. (REUTERS/Andrew Kelly/Reuters)
In preparation for a potential closure, the company has asked restructuring adviser AlixPartners to help resolve the issue, which it plans to resolve outside of bankruptcy, Reuters reported, citing people familiar with the matter.
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Weil’s proposed closure would mark one of the most significant collapses in the US legal industry since Dewey & LeBoeuf, another New York law firm, collapsed in 2012 due to financial pressures and the resignation of lawyers.