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Weil, Gotshal & Manges is expected to close its doors after the defection of dozens of top partners left the powerful New York law firm unable to survive as a viable business.
The partners will vote in the coming days to officially dissolve the firm, which has 1,200 lawyers and $2 billion in annual revenue.
Only about ten major U.S. law firms have dissolved in the past 25 years. Weil will continue to represent clients in high-profile court cases and transactions as the firm takes steps to close its doors after 95 years in business.
What’s so important about Weil?
Weil’s founders started the firm in the 1930s, at a time when Jewish lawyers were not welcome in “white shoe” New York corporate law firms.
Over the years, the firm became known for its prowess in handling corporate bankruptcies, including those involving Enron, Lehman Brothers and Sears, as well as for its advice to the boards of directors of major corporations such as General Motors. Its key partners over the years, including Harvey Miller and Ira Millstein, were marquee advisors to corporate America.
The major American law firms were generally very stable firms where lawyers remained with one institution for their entire careers. However, in recent years, lawyers have increasingly jumped ship for high salaries with their competitors.
This year, Weil has been plagued by a series of high-profile departures and failed merger talks, casting doubt on its future revenue prospects even though the company has performed well through most of 2026.
What is happening now?
Weil is expected to appoint a “liquidation committee” that could include some of his associates as well as outside restructuring experts to oversee the company’s closure. The existing management committee will be gradually dissolved, allowing its members to seek employment elsewhere.
Barry Wolf, Weil’s longtime executive partner and chairman of the management committee, is expected to join the liquidation committee, according to people familiar with the matter. The firm receives legal advice from restructuring experts at rival New York law firm Davis Polk & Wardwell.
Weil also hired James Mesterharm, global co-head of the turnaround and restructuring practice at AlixPartners, a consultancy specializing in managing distressed companies. AlixPartners is expected to work with a group of Weil employees to analyze the company’s financial situation and then finalize its operations, but the mandate will not be finalized until the liquidation committee is in place.
Weil is expected to soon appoint a “chief restructuring officer” who, in effect, will serve as the company’s top executive and be in charge of the liquidation process.
How is liquidation different from filing for bankruptcy?
A U.S. Chapter 11 reorganization or Chapter 7 liquidation is a process overseen by a federal judge with strict rules for the debtor and its creditors. The bankruptcy process can be lengthy and expensive and is often best suited to a company with significant debt or complex capital structures with litigation among plaintiffs.
A liquidation allows a business to more efficiently discharge its obligations and distribute any remaining proceeds or assets to its owners who, in Weil’s case, are its partners.
What are the main tasks of the key players?
Weil should quickly recover the unpaid cash from its customers. Restructuring experts and people close to the firm said the task of recouping payments from clients — who may be reluctant to pay — would fall to associates, many of whom are in the process of changing jobs.
The money collected will first be used to repay Weil’s own sellers and trade creditors. The company has no financial debt but has more than 15 leased offices in America, Europe and Asia.
Weil’s New York headquarters is located in the General Motors building, adjacent to Central Park. According to rating agency KBRA, Weil leases 450,000 square feet, or about 10 floors.
Rent averages $121 per square foot, which KBRA says is at or below Manhattan market rates. In total, Weil pays $54 million in annual rent for the New York space for a lease that runs until 2034.
Those close to Weil believe the company has a choice between subletting the space or negotiating an attractive termination agreement with BXP, the landlord that controls the building.
What are the expected financial losses?
Weil’s remaining revenues as well as costs related to the closure and cancellation of the bonds are being calculated. Current and former Weil partners have made annual contributions to the company that represent their ownership interests. Retired and deceased partners have always had their capital accounts redeemed by the firm on a schedule.
Weil’s equity is considered inferior to the leases and sellers and any future return of capital to partners would likely only occur once these other obligations have been paid in full.
As a recent example, creditors of Stroock & Stroock & Lavan, a well-known New York company that executed a liquidation plan in 2023, received 55.5 percent of their “agreed claims.”
Partners from a generation ago have a fully funded Weil pension. Weil lawyers hired in recent years do not benefit from a defined benefit pension plan.
Weil is expected to pay 90 days of salary as well as year-end bonuses to young lawyers and the approximately 1,000 support staff who will stay until December. The firm could implement a program to place its hundreds of associate lawyers in new firms, according to a source familiar with the matter.
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