Ryan McSharry on how & when a law firm can unravel
A firm that helped steer Lehman Brothers, Enron and General Motors through bankruptcy is preparing for its own end. Weil, Gotshal & Manges’ proposed wind-down is a human crisis for its people and clients. It is also a warning: a formidable legal reputation does not guarantee a durable business.
Founded in 1931, the New York firm had around 1,200 lawyers and generated more than $2 billion in revenue last year. On 28 October, its management committee recommended an orderly wind-down. Prominent partner departures, failed merger talks and an aborted leadership succession preceded the announcement. Senior departures affected both its US and London practices.
Weil’s is not alone. Dewey & LeBoeuf’s 2012 failure combined departures, debt and obligations to partners. Coudert Brothers’ breakup left international lease obligations and difficulties accessing funds across its network. Expansion can spread risk,but also multiply commitments and complicate control.
Could it happen in Britain? The profession has little reason for complacency. Halliwells entered administration
