Although Howrey LLP officially dissolved as a partnership as of March 15, some operations continued beyond that date. But at the close of business today, the firm is going into a more complete shutdown, due to a withdrawal of bank financing.
“Last night, we received notice via email that Howrey is closing as of today, because CitiBank refuses to pay the payroll,” one source reported. “CitiBank has also refused to pay our PTO [paid time off], and our pension contributions.”
“Citibank has closed the door on Howrey operations today, more than a month before the May 9th date listed on WARN notices,” a second tipster confirmed. “No PTO, pensions will be paid out.”
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UPDATE (6 PM): Citi takes issue with Howrey’s take on events. From a Citi spokesperson: “We are deeply disappointed in Howrey’s mischaracterization of the situation. Citi is not responsible for the employment practices of a client and has acted in a professional manner throughout this process.”
The full Howrey memo, after the jump.
Here’s the memo. This puts Howrey employees in a very difficult situation. Note, for example, that they need to “take immediate steps to secure alternative health insurance” — because even COBRA benefits will terminate as of April 30, 2011.
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This is most unfortunate news. Good luck to all the Howreyites who will be affected by this abrupt shutdown.
HOWREY LLP — MEMORANDUM — TERMINATION AND U.S. OFFICE CLOSURES
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Earlier: Prior ATL coverage of Howrey