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Kirkland & Ellis recently secured significant retainer payments, totaling $41.5 million from bankrupt clients Rite Aid Corp. and WeWork Inc., with additional contributions of $2.5 million from SmileDirectClub to the law firm, marking a lucrative period for the prestigious firm renowned for its work in high-stakes restructurings.
The filings last week revealed a $41.5 million retainer payment received by Kirkland & Ellis, acting on behalf of Rite Aid Corp. and WeWork Inc., companies currently navigating bankruptcy. SmileDirectClub, also under Kirkland’s guidance, disclosed a $2.5 million payment to the firm, reinforcing its ongoing financial strength.
Kirkland & Ellis, recognized for its extensive pool of nonequity partners, emphasized the importance of its restructuring practice, recently adding seven new partners from this division among its 205 new appointments. Notably, the firm’s adept handling of several cryptocurrency companies’ Chapter 11 filings drew attention last year.
In the bankruptcy proceedings for WeWork Inc., Kirkland confirmed receiving a $1 million retainer in September, followed by special purpose retainers totaling $21 million. The firm, billing between $685 and $2,245 per hour, has been working on restructuring the company’s leases amid resistance from certain landlords.
Additionally, Kirkland’s involvement with Rite Aid Corp.’s Chapter 11 case unveiled initial retainer payments of $500,000, later augmented by special purpose retainers of $19 million. Similarly, Cole Schotz, Wilson Sonsini Goodrich & Rosati, and Kobre & Kim are among the legal counsels representing Rite Aid, collectively receiving substantial retainer payments and billing at various hourly rates. Rite Aid, under new legal leadership, is facing a deadline to conclude its Chapter 11 restructuring by March 1, having severed ties with law firms connected to former executives.
