Weil set to dissolve as leadership recommends wind-down

Weil has told partners it plans to wind down the firm, bringing one of the most dramatic collapses in modern Big Law history to a head after weeks of partner departures and leadership turmoil.

The New York firm’s management committee has recommended an orderly wind-down, with partners expected to vote on the proposal in the coming days.

“For more than 90 years, Weil, Gotshal & Manges has had the privilege of advising clients on some of their most consequential matters,” a Weil spokesperson said in a statement shared with Non-Billable.

“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 it would continue serving clients during a wind-down expected to take place over the coming months, while supporting employees through the process.

The firm’s leadership informed partners of the decision on Wednesday. In London, associates were told late on Wednesday that they would receive a 90-day payout, with the firm expected to wind up its operations on 31 December, a person familiar with the matter told Non-Billable.

Weil has around 45 partners in the City, roughly 200 lawyers in total and more than 120 business services staff in London. Weil did not return a request for comment on the payout or wind-up date by the time of publication.

Outside the US, where it has 10 offices, the firm has offices in London, Brussels, Frankfurt, Munich, Paris and Hong Kong.

A remarkable unravelling

The decision caps a remarkable few weeks for a firm that last year generated more than $2 billion in revenue and average partner profits of more than $5 million.

The pressure intensified in September when star New York dealmaker and corporate chair Michael Aiello left for Cravath alongside five other M&A partners.

That departure was followed by a wider exodus on both sides of the Atlantic. In London, senior M&A partner Murray Cox, former office co-head David Avery-Gee and finance head Tom Richards were among those to leave or agree moves elsewhere.

Further uncertainty emerged over the weekend when reports said incoming leader Ramona Nee would no longer take over as executive partner in January and had held talks with Simpson Thacher over a move.

Weil had also reportedly brought in Davis Polk restructuring partner Brian Resnick to advise on a potential restructuring. Davis Polk was already advising the firm on merger talks with Willkie, which collapsed late last week.

From restructuring powerhouse to collapse

Founded in New York in 1931, Weil grew into one of Wall Street’s best-known corporate and finance firms.

Its rise through the 1990s was driven in part by a formidable bankruptcy and restructuring practice, which advised on some of the biggest corporate failures in US history.

The firm worked on the Enron and WorldCom bankruptcies and later played roles in five of the six largest US bankruptcy cases during the aftermath of the financial crisis, including Lehman Brothers, Washington Mutual and General Motors.

Weil’s dissolution would surpass Dewey & LeBoeuf’s 2012 collapse as the biggest law firm failure of the modern era.