Legal powerhouse Weil Gotshal set to liquidate after 95 years
Weil, Gotshal and Manges has told its partners the firm should be wound down, in a move that will bring an end to one of the US’s most storied legal firms.
Weil has seen an exodus of partners across the US and London in recent months, including former corporate co-managing partner Michael Hickey and private equity co-head Christopher Machera, who left the firm for US competitor Paul Weiss in August.
Speculation spread across the legal sector in recent months over the future of a firm that was once renowned as a powerhouse in corporate law.
Earlier this month, the New York-headquartered firm was reportedly “negotiating a memorandum of understanding” with an unnamed law firm.
Merger talks fell through
It was understood that the firm in a merger negotiations was its fellow competitor, Willkie Farr & Gallagher, but the talks fell through.
Bosses of the $2bn ‘white shoe’ firm reportedly told staff to join a company call on Wednesday afternoon, where they were informed the company was set to be dissolved, the Financial Times reported.
A Weil spokesperson said in a statement: “For more than 90 years, Weil, Gotshal & Manges has had the privilege of advising clients on some of their most consequential matters.
“Following a careful review of strategic alternatives, the Firm’s Management Committee has recommended to the partnership that the Firm pursue an orderly wind-down.
“The partners are expected to vote in the coming days. During the wind-down process over the coming months, the Firm will continue serving clients with the dedication and excellence that have defined it since its founding and will remain committed to supporting its colleagues,” they added.
The 95-year-old law firm has over 2,000 staff worldwide. The firm has had an office in London since 1996, where the headcount sits around the 400 mark.
John Bringardner, head of financial analytics firm Debtwire, said following the failed merger talks, there was a crisis of confidence among Weil’s top partners.
“Ultimately, it is this crisis of confidence that has caused the liquidation, rather than the debt or overspending seen in other large firm collapses, such as Dewey & LeBoeuf,” he said
Bringardner added, “The firm itself will enter wind-down mode and may file for Chapter 7 bankruptcy in an attempt to reject its office leases, while lawyers, staff, and clients will be free to move to other firms.“