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While other law firms have been conducting austerity measures thanks to the coronavirus, one Biglaw firm has been busying itself by making bank off the pandemic that’s been bringing its competitors nothing but pain.
Kirkland & Ellis, perhaps better known as the $4 billion firm, has already raked in almost $100 million thanks to its booming bankruptcy practice. How did they do it? Kirkland is outbilling its peers by representing 11 of the 24 large, public companies that have filed for bankruptcy thus far in 2020 — while no other firm has represented more than three. As reported by Bloomberg Law, the firm’s investment in this practice area has proven to be prudent:
Early results show Big Law competitors have so far been unable to topple Kirkland for what are often the most lucrative bankruptcy assignments: representing large, indebted companies negotiating a reprieve from creditors. Kirkland’s clientele includes brand name retailers such as J.C. Penney, Neiman Marcus, Pier 1 Imports, and Stage Stores.
“There’s a widely held perception that Kirkland has one of the best restructuring practices in the world,” said Kent Zimmermann, a consultant for law firms at the Zeughauser Group. “It’s another example of how it can really pay off to pick your spots and be among the best in chosen areas of focus. That’s what you’re seeing at Kirkland.”
Thus far, Kirkland has taken in more than $94 million related to those cases (and this amount doesn’t even include the firm’s representation of J.C. Penney and Intelstat, for which K&E has yet to report its early earnings). Given the pace of this year’s filings, we’re sure there’s more revenue to be made for Kirkland:
The 12 filings in May doubled the number of filings from January through April. And the 24 filings through five months this year are just one shy of the 25 large public company bankruptcies filed during all of 2019, according to [UCLA Professor Lynn] LoPucki’s bankruptcy database.
“This could be larger than either of the two earlier booms,” LoPucki said.
Kirkland & Ellis had a great 2019, but its 2020 could be even better thanks to all the distressed retailers and public companies that have been forced to file for bankruptcy due to COVID-19. Thanks to their bad luck, the firm will have a banner year.
Kirkland’s Bankruptcy Business Out-Billing Peers In Pandemic [Bloomberg Law]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.