After nearly five full months of taking blow after blow, apparently it was time to throw in the towel. Reeling New York law firm Dewey & LeBoeuf finally filed for Chapter 11 bankruptcy protection last night in Manhattan federal bankruptcy court.
In addition to the filing, Dewey also announced last night that it is seeking approval to liquidate its business after failing to find a merging partner. The firm said it would ask about 90 employees to remain on staff to assist in winding down the business. It has $315 million in liabilities, with $225 million of that owed to its banks. Former partners, landlords and even janitors are still owed money.
Despite the bankruptcy filing, experts still expect lawsuits to mount up against the soon-to-be-defunct firm from disgruntled former partners to other outside interests. In fact, they’ve already begun.