Weil Gotshal & Manges recommends orderly wind-down after partner departures and failed merger talks
The 95-year-old law firm Weil, Gotshal & Manges is planning to shut down following a wave of partner exits and an aborted merger, with a partner vote expected soon.
Weil, Gotshal & Manges disclosed that its management committee has recommended an orderly wind-down of the firm, citing a recent exodus of senior partners and the collapse of merger negotiations. The recommendation was presented at a companywide meeting by longtime leader Barry Wolf, and partners are slated to vote on the proposal in the coming days.
The firm, which generated $2.1 billion in revenue last year and has a global staff of about 1,200 lawyers, remains debt-free and holds limited liabilities, according to sources familiar with the situation. It continues to collect outstanding client payments and could close without filing for bankruptcy, allowing lawyers to recover some unpaid earnings.
Weil’s Manhattan lease for roughly 380,000 square feet in the General Motors Building is among its largest liabilities, but real-estate experts say the space could be re-leased to a new tenant at a higher rate.
The firm’s challenges intensified after dealmaker Michael Aiello and his team left for Cravath, Swaine & Moore in September. A proposed merger with Willkie Farr & Gallagher, which would have created a firm with over $4 billion in revenue, fell apart, prompting additional partner departures.
Leadership succession also unraveled when Ramona Nee, a private-equity partner slated to succeed Wolf after his 16-year tenure, withdrew from the role. Insiders reported disagreements among senior partners over growth strategy, with some favoring competition with larger firms and others preferring a leaner operation.
Founded in 1931 by Frank Weil, Sylvan Gotshal and Horace Manges, the firm built a reputation for handling major corporate bankruptcies, including the 2008 Lehman Brothers Chapter 11 case, the largest filing in U.S. history.