Why is the Stroock law firm shutting down? Iconic New York form dissolves after 147 years

The New York City-based American law firm Stroock & Stroock & Lavan LLP is famous for its investment banks, financial institutions, private equity companies, and multinational corporations.

Unfortunately, the firm has recently resolved to dissolve itself for various reasons. As per The American Lawyer,

“In an email sent to the firm Monday evening and obtained by Law.com, firm co-chairs Jeff Keitelman and Alan Klinger said they anticipate the executive committee will soon implement an Oct. 24 vote of the partners authorizing the “committee to dissolve the firm at the appropriate time. "We plan to give you advance notice of that,” the email said."

Another factor contributing to the firm's demise could have been the large number of lawyers who left the farm to work on other farms. Additionally, it had an unsuccessful merger procedure.

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The Stroock law firm is closing down due to many reasons, including a max exodus by the lawyers and a failed merger

There are many reasons behind the downfall of the company (Image via Facebook / Stroock)

Stroock & Stroock & Lavan in New York is closing after a legal practice and merger negotiations with its rivals broke down. According to Reuters, the law business, which was established in 1876, ran into financial difficulties when its bankruptcy practice failed.

According to Reuters, the firm's non-real estate practices were destroyed more than a year ago when over 40 bankruptcy lawyers left the firm to join another firm called Paul Hastings. This happened one day after the company and Pillsbury Winthrop Shaw & Pittman stated they had canceled the merger talks.

The firm had worked hard to rebuild its other significant practice area outside of real estate, but this destroyed it. Furthermore, as stated by the previously cited source, Keitelman and other members of the real estate team are among the approximately 30 partners who are expected to join another firm named Hogan Lovells. The firm announced this in a statement on October 27.

Its partnership, Keitelman and Klinger, expressed their excitement in an email about the many Stroock solicitors joining Hogan Lovells. They said,

“We are confident that this move will offer the best opportunities and growth potential for the most members of our firm."

Additionally, roughly a month after the firm disclosed information about the merger, the non-exclusive merger negotiations with worldwide firm Pillsbury Winthrop collapsed, according to ALM Media. Furthermore, Squire Patton Boggs, McGuire-Woods, Steptoe & Johnson, and Nixon Peabody were also involved in these merger negotiations.

However, due to the firm's pension commitments, none of those acquisitions could be completed. Following the unsuccessful merger talks between the firm and the other companies came the announcement of the mass departure.

Based on the email that Reuters disclosed, the executive committee of the firm will shortly put the decision of the resolution into effect. The dissolution plan's specifics were not included in the email.

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As reported by Reuters, a person with knowledge of the situation said that when the Hogan Lovells purchase closes in the coming weeks, Stroock's dissolution procedure will begin.

According to the source mentioned above, an official representing LaSalle Investment Management, Clarion Partners, and Banyan Street Capital declined to comment on the terms of the lease or the intentions for the space following the departure of the long-term tenant.