McKinsey denies media report on shutting down restructuring business

(Reuters) -McKinsey & Co on Tuesday denied a media report that said the consulting firm was shutting down its corporate restructuring practice.

Earlier in the day, the Wall Street Journal reported that McKinsey was shuttering its restructuring unit, and some partners in the division were laid off while yet others were being absorbed into other practices.

"McKinsey RTS is not being shut down. Reports to the contrary are inaccurate," the spokesperson for McKinsey told Reuters.

The unit has been involved with several lawsuits and a regulatory probe over recent years.

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 agreed to pay $18 million to the U.S. Securities and Exchange Commission for compliance failures in handling non-public information.

(Reporting by Manya Saini and Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Syamnath)