[Thacher's] overall headcount is down more than 100 lawyers compared to last year — and so are its profits. Profits per partner fell more than 22 percent in 2007 to $1.02 million, according to the Am Law 200.
The firm has had a constant stream of high-profile departures, including its vice chairman Thomas Leslie, who decamped for Greenberg Traurig in October, and Washington managing partner Richard Schaberg, who left for Hogan & Hartson’s D.C. office last month. The New York consultant and another individual familiar with the discussions say that if the deal falls through, Thacher Proffitt will likely go under.
We don’t have much more information about the K&S/TPW talks, but based on sources at Thacher, something significant is about to go down at the firm — and dissolution is one possibility.
According to our tipsters, whether or not there is a rescue by King & Spalding, Thacher’s litigation department won’t be a part of it. Word on the street is that the head of litigation is leaving TPW tomorrow.
More after the jump.
As far as we can tell, all news points to Tuesday as TPW’s “dissolution day.” Another tipster reports:
So far I was told we will learn more tomorrow. Right now we are completely in the dark. No talk of any benefit info. Severance. 401k. Nothing.
It seems like most things hinge on the state of talks between Thacher Proffitt and King & Spalding. No sources mention any other suitors or white knights on the horizon able to save the parts of TPW that get left behind by K&S.
Thacher representatives, including a firm spokeswoman and managing partner Paul Tvetenstrand, did not respond to our requests for comment. But sources expect an official announcement of some kind tomorrow.
We’ll keep you posted.