Dewey & LeBoeuf files for bankruptcy, UK arm in administration
The largest ever law firm collapse was cemented yesterday when Dewey & LeBoeuf filed for bankruptcy in the US, with the UK LLP also being put into administration.
Dewey & LeBoeuf filed for Chapter 11 bankruptcy in a New York bankruptcy court on Monday 28 May. Albert Togut, managing partner of Togut Segal & Segal has been instructed by Dewey as bankruptcy counsel (20 April 2012), with Joff Mitchell of Zolfo Cooper retained as chief restructuring officer.
According to reports the firm will ask around 90 staff to stay on at the firm to help with the liquidation, which is expected to be completed over the coming months.
Dewey & LeBoeuf’s UK LLP, which comprises the firm’s London and Paris offices, and its subsidiary Dewey & LeBoeuf Services Ltd, were also placed into administration yesterday with BDO partners Mark Shaw and Shay Bannon appointed as joint administrators. Following the administration, all staff – save for a small core team that will assist with the wind down – have been made redundant.
In a statement Shaw said: “D&L UK has generated significant profits, but it could not escape the serious issues which have affected the Dewey & LeBoeuf global business. We have worked with D&L UK’s management, the legal regulators and other stakeholders over the last few weeks to ensure that client interests and files are protected, at the same time as maximising returns to creditors of both D&L UK and D&L Services. This will continue following our appointment. The diligent planning which has taken place so far will allow for an ongoing orderly wind-down during administration.”
To read The Lawyer’s in-depth features on Dewey & LeBoeuf click here and here.
Readers' comments (5)
Anonymous | 29-May-2012 10:33 am
So that is the job centre then. I have worked with some great people at D&L. Such a shame so many dedicated people have been dumped during such a recession.
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Anonymous | 29-May-2012 12:57 pm
Wow. Can't say I am the least bit surprised at the firm's demise. Karma, eh...
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Anonymous | 29-May-2012 1:40 pm
Agree. Not the nicest bunch. Been a long time coming. No people management.
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Anonymous | 29-May-2012 7:43 pm
This is sad. Best of luck to those now unemployed. People talking about karma need to grow up. Those most affected are the support staff, and they had nothing to do with the management of the firm.
What I would be curious to know is whether anyone is sad to be leaving for reasons other those purely financial. How 'toxic', if at all, was the culture at this firm?
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Anonymous | 30-May-2012 5:34 pm
As a former support staff member themselves, "People" talking about Karma know precisely what they are talking about and faced some extremely grown-up issues as a result of the firm's poor managment - and well before the proverbial finally hit the fan. If you have to ask about the firm's culture, you clearly have no idea - or at least not directly.
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