Sheppard, Mullin, Richter & Hampton is adding a seven-year veteran from Kirkland & Ellis to its Chicago ranks as the firm grapples with a growing volume of bankruptcy work.

A number of industries and businesses Sheppard Mullin lawyers work with were showing signs of distress even before COVID-19 began ravaging the country, said Edward Tillinghast, the chair of the firm's finance and bankruptcy practice.

That work has only accelerated as the pandemic's economic effects began to sink in, he added—just in time for the arrival of Justin Bernbrock, Sheppard Mullin's newest addition and its first Chicago-based bankruptcy partner. "He's going to be very busy quickly," Tillinghast said.

"It's been a focus of the firm to grow in Chicago and throughout the firm in this area. It's an increasing area of demand for us, as it has been for awhile. We were finding our bankruptcy lawyers were pretty close to tapped out, which is a good problem to have," Tillinghast added.

The pandemic's economic effects have hit Sheppard Mullin as well. On Monday, the same day Bernbrock began working remotely at his new firm, Sheppard Mullin announced it was furloughing 33 staff members who could not do their jobs remotely, such as receptionists, support services and file center employees.

Asked about the timing, Larry Eppley, the managing partner of Sheppard Mullins' Chicago office, said the bankruptcy practice was something the firm wanted to grow, and "there was no reason" to delay Bernbrock's hiring as "it became more apparent that skill set was going to be in demand."

Bernbrock said it was "odd and feels somewhat uncomfortable" to be excited about all of the work he has to do at Sheppard Mullin.

"It's one of the internal struggles for bankruptcy lawyers. When business is up for bankruptcy lawyers, it often means there's quite a bit of pain in the economy writ large," Bernbrock said.

Bernbrock indicated that his departure from Kirkland, which he described as having the preeminent bankruptcy practice in the world, was partly motivated by his desire to build his career and obtain a leadership role. He cited his past experience in the U.S. Navy, which he said led to being drawn to leadership roles and opportunities.

"One of the primary drivers in the transition is coming to a place where, if I perform as I know and hope that I can, there is a real opportunity to have a meaningful leadership role," said Bernbrock, who made partner at Kirkland in 2018.

Because Kirkland is at the top, the firm is focused on maintaining that position, Bernbrock said. Sheppard Mullin will give him the leeway to try something new, he added.

Bernbrock is at least the second bankruptcy partner to leave Kirkland this week. The other is Chad Nichols, an energy sector specialist who joined Akin Gump Strauss Hauer & Feld's Houston office.

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