The second end of Wall Street's Lebenthal saga may be written soon, according to a
story in The Wall Street Journal.
The Journal reports that Alexandra Lebenthal, granddaughter of the firm's founders, is nearing a deal to sell the former municipal bond firm as soon as this month. Lebenthal Holdings currently consists of a capital-markets unit that underwrites corporate bonds and an asset management unit. It sold the municipal bond business in 2014. While Ms. Lebenthal and her brother James contend the firm's businesses are stable, they admit the firm is troubled financially, and Ms. Lebenthal said, "I am in the process of taking care of unpaid bills."
Founded as Lebenthal & Co. in 1925, the firm became well-known to New Yorkers in the 1960s and 1970s after James Lebenthal, the founders' late son and father of Alexandra and James, used a memorable TV commercial to pitch the firm's municipal bond business. The family sold that business in 2001 to Advest, which was acquired by Merrill Lynch. Ms. Lebenthal bought back the rights to her family name from Merrill in 2007 for $1,000.
Today, the company and the Lebenthals face allegations that they owe debts totaling millions of dollars. The Journal said it isn't clear whether a deal would be enough to pay creditors fully, but any deal aims to retain the firm's name and 44 employees, according to sources who spoke with the Journal.
In 2013, the firm launched Lebenthal Wealth Advisors and brought in Jeffrey Lane, former chief executive at Bear Stearns Asset Management and Neuberger Berman Inc.; Frank Campanale, former head of Smith Barney's consulting group; and Andrew Grillo, a former executive at Smith Barney. The firm closed that unit last summer.
