Gleacher to Shut Its Investment Bank

Eric Gleacher, the founder of the bank that bears his name, in 2005. Earlier this year, he left the firm. Jennifer S. Altman for The New York TimesEric Gleacher, the founder of the bank that bears his name, in 2005. He left the firm earlier this year.

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’s firm was retained to help explore strategic alternatives and provide reorganization advice.

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Among the first orders of business was to close Gleacher’s mainstay investment banking unit – the division created when Eric Gleacher, a veteran deal maker, founded the firm over two decades ago – affecting 20 employees.

Gleacher said 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 last year and change, having turned down opportunities to sell to the likes of Stifel Financial. (Mr. Gleacher had expressed frustration that the board decided 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 on Tuesday, to $13.52. The firm now carries a market value of $82.9 million.