Slow Business Causes Shutdown Of 160-Year Old New York Law Firm By Year End

New York, NY (AHN) - Thacher Proffitt & Wood, a 160-year old New York law firm, will close by the end of the year due to a slow down in business prompted by the subprime crisis. Thacher will be the fourth U.S. company to dissolve in 2008.

One hundred of the firm's lawyers, 40 of whom are partners, are joining a larger legal firm, the Sonnenschein, Nath & Rosenthal beginning Jan. 1. Thacher's partners tried talking with potential buyers, but Sonnenschein, based in Chicago, opted to hire some of Thacher's lawyers instead to provide the firm their extensive experience in handling real estate, finance and corporate practices.

Thacher was established in 1848 and counted among its clients the largest banks and investment banks such as Citigroup and UBS.

In a statement, Thacher said, "Although many avenues for a merger were explored, in the current economic environment it became apparent to the committee that a merger could not be executed... In light of severe reductions in revenue, it became clear that Thacher Proffitt would not have the financial resources to continue business operations."

The firms has 195 lawyers before its shutdown. In October it shuttered its White Plains office in New York.

Sonnenschein, which already has 700 attorneys on its payroll and is one of the 40 largest law companies, said it took in the Thacher lawyers because of their belief that the financial markets would eventually recover. Sonnenschein chairman Elliott Portnoy said, quoted by the New York Times, "This is a group of lawyers who aren't just structured-finance lawyers, but lawyers who provide a large set of services to the world's largest financial institutions, banks and investment banks."