Weil Gotshal, the law firm behind the Lehman and Enron bankruptcies, plans to wind down

The essentials: Weil, Gotshal & Manges, one of the best-known corporate law firms in the United States, plans to shut down. Its leadership told partners on Wednesday, October 28, 2026, that the management committee had recommended an “orderly wind-down”, according to Reuters. The decision follows months of partner departures and merger talks that went nowhere.

What did the firm announce?

In a statement quoted by Reuters, Weil said its management committee “has recommended to the partnership that the firm pursue an orderly wind-down”. City AM reports that the recommendation came after “a careful review of strategic alternatives”. Partners still have to vote on it, and that vote is expected “in the coming days”, the firm said.

The German legal publication JUVE reports that partners worldwide were told the firm would be dissolved at the end of the year. Weil says it will keep serving clients in the meantime.

A few days earlier, a Weil spokesperson had told the Wall Street Journal that “no decision has been made to dissolve the firm”, Above the Law notes.

Why is a firm this size closing?

Reuters puts the cause down to an exodus of partners the firm could not stop. Above the Law traces the slide back to September, when corporate department chair Michael Aiello left for Cravath, Swaine & Moore. According to Reuters, five partners went with him. Christopher Machera, a private equity partner, moved to Paul, Weiss. Two mergers partners in London left for Sullivan & Cromwell.

There was trouble at the top as well. In March, Weil named Ramona Nee as the next executive partner, succeeding Barry Wolf, but she reportedly decided not to take the job, Reuters says. Talks over a merger with Willkie Farr & Gallagher in early October also fell apart, according to Reuters and Above the Law.

City AM quotes Debtwire’s John Bringardner, who blames a loss of confidence rather than debt or overspending: “Ultimately, it is this crisis of confidence that has caused the liquidation.”

How big is Weil?

Indicator	Figure	Source
Founded	1931	Reuters
Headquarters	Fifth Avenue, Manhattan	Reuters
Lawyers	About 1,200	Reuters
Staff worldwide	More than 2,000	City AM
Revenue last year	About $2.1 billion	Above the Law
Average profit per equity partner	About $5.4 million	The American Lawyer, cited by Reuters
London office	Opened in 1996, about 400 staff	City AM

Frank Weil, Sylvan Gotshal and Horace Manges founded the firm, which made its name in bankruptcy law. It represented General Motors, Enron and Lehman Brothers in their Chapter 11 cases. Lehman’s was the largest Chapter 11 case on record, Reuters notes.

What happens to staff and clients?

According to a person with knowledge of the matter cited by Reuters, associates and staff were told they would be paid for another 90 days and would receive bonuses at the end of 2026. The same person said the firm wants to wind down outside bankruptcy. AlixPartners and the law firm Davis Polk have been brought in to advise, Reuters reports.

JUVE reports that there is enough cash to pay out all outstanding partner withdrawals, and that the German practice is looking for a new home as a single group. More broadly, rival firms are expected to take over teams one by one, JUVE writes. In City AM, Bringardner says Weil “may file for Chapter 7” bankruptcy so it can get out of its office leases. The firm has not confirmed this.

Has this happened before?

The obvious comparison is Dewey & LeBoeuf. That firm had more than 1,300 lawyers after its 2007 merger and collapsed in 2012 after a string of departures and heavy debts, Reuters recalls. Dewey filed for bankruptcy in May 2012, at the time the largest law firm collapse in US history, according to Above the Law.

Other big US firms have recently chosen mergers instead. Shearman & Sterling combined with Allen & Overy in 2024, and Cadwalader, Wickersham & Taft merged with Hogan Lovells this year, Reuters notes.