© Reuters. FILE PHOTO: The logo of consulting firm McKinsey and Company is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo

(Reuters) – Consulting firm McKinsey & Co is shutting down its corporate restructuring practice, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Some partners in the restructuring unit, called McKinsey RTS, were laid off and others are being absorbed into other practices, the report added.

McKinsey did not immediately respond to a Reuters request for comment on the matter.

The closure was announced internally and follows numerous lawsuits and government investigations concerning McKinsey’s work advising troubled borrowers, according to the report.

In October, the U.S. Supreme Court declined to hear McKinsey’s bid to escape a lawsuit by retired turnaround specialist Jay Alix. Alix had accused the firm of concealing potential conflicts when seeking permission from bankruptcy courts to perform lucrative work on corporate restructurings.

In November 2021, an affiliate of the consulting firm had also agreed to pay $18 million to the U.S. Securities and Exchange Commission for compliance failures in handling non-public information.

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