The Weinstein Company is preparing to file for bankruptcy as a potential deal falls apart.
A letter from the The Weinstein Company’s Board of Directors contains the statement that the company plans to file for bankruptcy. The decision comes as funds continue to run out and talks of a sale lead nowhere.
The Weinstein Company has been struggling ever since the accusations against founder Harvey Weinstein were made last year. The company ousted him in Fall 2017, but still had trouble making any deals to save itself.
One deal it was working on was with a group of investors led by Maria Contreras-Sweet. The goal was to buy up the company and create a new one with women as its leaders. However, The Weinstein Company was seeking interim funding to keep it afloat until the deal was complete, which the investors were unwilling to provide, reports CNN
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Other troubles that The Weinstein Company has been facing come from New York Attorney General Eric Schneiderman. He has filed a lawsuit against the company following a fourth-month investigation. Schneiderman is pushing for the company to pay back employees that have suffered abuse and assault. He also said he would get in the way of a sale if his requirements weren’t met.
“While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice,” The Weinstein Company told The New York Times. “Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
