Yesterday, we told you Weil Gotshal & Manges was panic mode, and now we know just how bad that is.
The Financial Times reports that Weil has brought in Brian Resnick, one of Davis Polk’s top bankruptcy lawyers, to advise on a potential restructuring. A wind-down is on the list of options, alongside a last-minute merger or carrying on as a slimmed-down standalone firm. Weil is also interviewing financial consultancies to go through its books, including obligations like pensions and office leases. As the FT’s Sujeet Indap put it on X, Resnick is now on the scene at Weil, and a wind-down is “now being actively discussed among options.”
A wind-down, for a firm that brought in $2.1 billion last year. That escalated quickly. A spokesperson for the firm told the Wall Street Journal, “No decision has been made to dissolve the firm.”
Meanwhile, the flood of Weil résumés is warping the lateral market itself. With legal recruiters reporting they are seeing a ton of Weil résumés right now, and rival firms are responding with quickness. Other lateral searches are getting pushed to the back burner, so if your process suddenly stalled, Weil may be the reason. And if you’re a Weil lawyer, well, your best bet is to move fast.
Because Weil’s Biglaw rivals aren’t exactly waiting for a merger. Law.com reports Simpson Thacher is recruiting in Weil’s Boston office, and Simpson and Paul Weiss are both eyeing Weil’s bankruptcy practice. Why merge with Weil when you can wait and pick up the pieces?
So, how’d we get here? A timeline of key events:
Ninety-five years of building one of Biglaw’s great names, and it only took a few months for the rest of the market to start shopping for the parts.
Earlier: Weil Partners Are ‘Frantically Sending Résumés’ As Leadership Weighs Its Options
Weil’s Successor Walked Away, And Now The Firm Has A ‘Run On The Bank’ Problem
Weil’s Incoming Leader Won’t Take The Job, And Might Take One At Simpson Thacher Instead
Weil’s Merger With Willkie Is Dead, But Its Partner Exodus Is Very Much Alive
Weil Gotshal Is Reportedly Negotiating A Merger, About A Month After Saying It Wasn’t In Merger Talks
Cravath And Weil Are Just Trading Partners At This Point
Weil’s Revolving Door Now Spins In Both Directions
Weil Seeks To Strengthen Its ‘Platform’ As Merger Rumors Swirl
Weil Is Relieved To Lose Its Biggest Rainmaker. Cravath Is Thrilled To Get His ‘Values.’
The Cravath Shade Wasn’t A One-Off: Weil Insiders Line Up To Say Good Riddance
Weil’s Corporate Chair Decamps For Cravath, Which Weil Would Like You To Know Is ‘A Smaller Platform’
Top Biglaw Firm Announces Its First Female Executive Partner In History
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Bluesky @Kathryn1
The post Weil Gotshal Is Now Discussing A Possible Wind-Down appeared first on Above the Law.
Yesterday, we told you Weil Gotshal & Manges was panic mode, and now we know just how bad that is.
The Financial Times reports that Weil has brought in Brian Resnick, one of Davis Polk’s top bankruptcy lawyers, to advise on a potential restructuring. A wind-down is on the list of options, alongside a last-minute merger or carrying on as a slimmed-down standalone firm. Weil is also interviewing financial consultancies to go through its books, including obligations like pensions and office leases. As the FT’s Sujeet Indap put it on X, Resnick is now on the scene at Weil, and a wind-down is “now being actively discussed among options.”
A wind-down, for a firm that brought in $2.1 billion last year. That escalated quickly. A spokesperson for the firm told the Wall Street Journal, “No decision has been made to dissolve the firm.”
Meanwhile, the flood of Weil résumés is warping the lateral market itself. “We are inundated with Weil candidates at every level seeking our advice right now,” headhunter Evan Fox wrote on LinkedIn.
According to Fox, top firms have gone all hands on deck to meet Weil partners, counsel, and associates, and several have moved Weil candidates straight to full rounds of interviews. Basically, on-campus recruiting crammed into a single week. That lands on everyone else, too. Other lateral searches are getting pushed to the back burner, so if your process suddenly stalled, Weil may be the reason. Fox’s advice to candidates whose credentials don’t pop on paper is to wait a month or so for the dust to settle. His message to Weil lawyers was blunter: they don’t deserve this, but they need to look out for themselves, cast a wide net, and move fast.
Because Weil’s Biglaw rivals aren’t exactly waiting for a merger. Law.com reports Simpson Thacher is recruiting in Weil’s Boston office, and Simpson and Paul Weiss are both eyeing Weil’s bankruptcy practice. Why merge with Weil when you can wait and pick up the pieces?
So, how’d we get here? A timeline of key events:
Timeline
How Weil Got Here
From a leadership handoff to a wind-down discussion in seven months.
Part I: The Exits Begin
August into early September
Weil’s private equity and funds bench starts walking. Murray Cox heads to Simpson Thacher, and private funds partners Simon Saitowitz, Stephanie Epstein Srulowitz, Brian Parness, and Andrew Nichol follow him there.
September 11
Corporate chair Michael Aiello takes five M&A partners to Cravath, which Weil describes as “a smaller platform.” In the days that follow, Weil insiders line up to say good riddance, calling it a chance to “let Weil be Weil.”
September 17
London co-managing partner David Avery-Gee and corporate partner Sarah Flaherty leave for Sullivan & Cromwell.
Part II: The Merger Hunt
September 28
Weil gets one back. Cravath’s private equity head Peter Feist returns to Weil as U.S. co-head of private equity. In welcoming him, Nee, who is still publicly the incoming executive partner, says his return “reflects the scale of our ambitions.”
Also in September
According to the Wall Street Journal, Nee privately tells the firm she won’t take the top job. Nobody outside the firm finds out for more than a month.
October 19
Bloomberg Law reports Weil is negotiating a merger and working out a memorandum of understanding. Former corporate co-managing partner Michael Hickey is expected at Sullivan & Cromwell.
October 22
The WSJ reports another wave of exits. Drew Tulumello and Chantale Fiebig are going to Davis Polk, management committee member Caroline Zalka to Paul Weiss, and corporate co-managing partner Lyuba Goltser to Sidley. That night, the Willkie talks die.
Part III: The Unraveling
October 25
The FT reports Nee won’t take the job, and Semafor reports she’s held talks with Simpson Thacher. Weil’s management committee meets all day.
October 26
The WSJ reports a Weil leader has reached out to restructuring counsel, while partners are “frantically sending résumés” to rivals.
October 27
The FT reports Davis Polk’s Brian Resnick is on board as the firm’s restructuring counsel, and a wind-down is on the table. While a Weil spokesperson says, “No decision has been made to dissolve the firm.”
Ninety-five years of building one of Biglaw’s great names, and it only took a few months for the rest of the market to start shopping for the parts.
Earlier: Weil Partners Are ‘Frantically Sending Résumés’ As Leadership Weighs Its Options
Weil’s Successor Walked Away, And Now The Firm Has A ‘Run On The Bank’ Problem
Weil’s Incoming Leader Won’t Take The Job, And Might Take One At Simpson Thacher Instead
Weil’s Merger With Willkie Is Dead, But Its Partner Exodus Is Very Much Alive
Weil Gotshal Is Reportedly Negotiating A Merger, About A Month After Saying It Wasn’t In Merger Talks
Cravath And Weil Are Just Trading Partners At This Point
Weil’s Revolving Door Now Spins In Both Directions
Weil Seeks To Strengthen Its ‘Platform’ As Merger Rumors Swirl
Weil Is Relieved To Lose Its Biggest Rainmaker. Cravath Is Thrilled To Get His ‘Values.’
The Cravath Shade Wasn’t A One-Off: Weil Insiders Line Up To Say Good Riddance
Weil’s Corporate Chair Decamps For Cravath, Which Weil Would Like You To Know Is ‘A Smaller Platform’
Top Biglaw Firm Announces Its First Female Executive Partner In History
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Bluesky @Kathryn1
