Gleacher & Company, the troubled boutique bank, said on Tuesday that it was shutting down its investment banking business and that it had named a restructuring expert as its chief executive.
The hiring of Christopher J. Kearns of the Capstone Advisory Group as chief executive and chief restructuring officer portends tougher days ahead. Mr. Kearns’ firm was retained to help explore strategic alternatives and provide reorganization advice.
Among the first orders of business was Gleacher shuttering its mainstay investment banking â€" the division created when Eric Gleacher, a veteran deal maker, founded the firm over two decades ago â€" affecting 20 employees.
Gleacher said that it was considering a further wind-down of itself, exploring a potential merger and reinvesting its liquid assets. The firm had already considered a merger over the past year and change, having turned down opportunities to sell to the likes of Stifel Financial. (Mr. Gleacher had expressed frustration over the board choosing not to sell the company, though he has said that he left earlier this year because he wanted to become more of a freelance adviser.)
Shares in Gleacher dipped slightly by midday on Tuesday, to $13.52. The firm now carries a market value of $82.9 million.
