Law firm Weil, Gotshal & Manges has hired restructuring specialists to evaluate options including a possible wind-down, as a deepening crisis engulfs one of America’s largest and most prestigious firms. Weil is working with Brian Resnick of Davis Polk to advise on a potential restructuring, after merger talks with a rival collapsed. Other options include a last-minute merger or a slimmed-down standalone entity.
The firm is also interviewing financial consultancies to analyze its books and determine a course of action. Weil’s obligations include pensions and office leases globally. The move marks a rapid decline for a firm that was ranked among the US’s top 30 by revenue last year, topping $2bn.
Ramona Nee, the partner chosen to lead Weil from January, has reportedly withdrawn from the role. The firm has been rocked by the departure of several top lawyers, including Chris Machera, Michael Aiello, and David Avery-Gee, who have moved to rival firms. These exits have severely impacted its business model and unsettled other lawyers, many of whom are exploring contingency plans.
The crisis underscores how even the largest and longest-established law firms can be thrown into turmoil by an exodus of top talent. Shutdowns among large US law firms are rare; Stroock & Stroock & Lavan shut in 2023, and Dewey Le Boeuf filed for bankruptcy in 2012.
Source: Financial Times Companies · Summarized by HeadlinesBriefing