Weil Gotshal and Manges partners vote to liquidate, cityam.com says

Weil Gotshal and Manges partners have voted to liquidate the 95-year-old law firm following failed merger talks and an exodus of partners, cityam.com reported.

Partners Vote for Wind-Down After Merger Talks Fail

Leadership at the New York-headquartered firm attempted to secure a future by negotiating a memorandum of understanding with Willkie Farr & Gallagher earlier this month. Those merger talks ultimately fell through. Following the failed negotiations, the firm’s management committee recommended that the partnership pursue an orderly wind-down, according to a Weil spokesperson cited by Bloomberg.

Staff members learned of the dissolution during a company call on Wednesday afternoon. John Bringardner, head of financial analytics firm Debtwire, pointed to a crisis of confidence among top partners as the root cause of the liquidation rather than the debt burdens seen in past large firm collapses like Dewey & LeBoeuf. Bringardner noted that the 2,000-person firm will enter wind-down mode and may file for Chapter 7 bankruptcy to reject office leases.

Partner Exoduses Precede Liquidation

The firm experienced a heavy drain on its talent roster throughout the year. Former corporate co-managing partner Michael Hickey and private equity co-head Christopher Machera both left the firm for U.S. competitor Paul Weiss in August. These high-profile exits spanned both U.S. and London operations. Weil has maintained an office in London since 1996, where headcount sits around the 400 mark.

During the wind-down process over the coming months, the firm will continue serving clients while lawyers, staff, and clients transition to competing practices.