Now in Legal Rebels:
Posted Feb 01, 2011 12:27 pm CST
About three-quarters of Howrey’s partners have reportedly gotten offers from Winston & Strawn, a onetime potential merger partner.
According to the Recorder, the job offers were made over the weekend. A recruiter familiar with the situation told the publication that all partners got job offers unless they had a conflict of interest or had indicated they wanted to pursue other opportunities.
The news follows reports that Winston & Strawn was talking—or had stopped talking—about a possible merger with Howrey, where profits per partner reportedly plummeted from $1.3 million in 2008 to $550,000 last year.
Howrey partners have 21 days to respond to Winston’s job offers, the story says. The law firm will likely scramble to collect outstanding fees as it tries to wind down in an orderly fashion, the story says.
One former partner told the Recorder that the firm’s receivables are more than its debt. But some observers said that collections become more difficult after news spreads that a firm is closing. Said one lawyer from another law firm, “The receivables for a no-longer-in-existence firm are awfully hard to pull off.”
“If I was a Howrey partner, I wouldn’t be looking to figure out when I’ll get the rest of the money the firm owes me, I’d be looking to see when I have to pay the firm,” the lawyer said.