NEW YORK, Oct 28 (Reuters) – Weil, Gotshal & Manges plans to wind down its operations, its leadership told partners on Wednesday, capping a dizzying downfall for the nearly century-old law firm after it failed to stem an exodus of partners.
“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,” Weil said in a statement. “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.”
It is unclear what the dissolution will mean for Weil’s approximately 1,200 lawyers, staff and creditors.
The dissolution would mark the collapse of one of the country’s most prominent law firms, which is based in New York, and whose lawyers have helped steer landmark bankruptcies, corporate takeovers and litigation for decades.
Throughout the legal industry, law firms have increasingly used aggressive compensation packages to recruit top partners for lucrative private equity, merger and litigation work.
That has sparked a talent war that has left even large and storied law firms financially vulnerable when rainmakers depart, and other lawyers start hunting for their own exit ramps.
(Reporting by Sara Merken, Jonathan Stempel and Kanjyik Ghosh; Editing by David Bario, Nia Williams, Shreya Biswas and Alistair Bell)
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